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Keeping watch over Canada’s economic outlook (2012)
By Debra Pretty-Straathof, Vice President, Ontario Federation of Agriculture
I recently attended an event where a panel of chief economists from Canada's top five banks presented their views of Canadian and global economic prospects for 2012.
While the calendar has changed, the same can’t be said for the general economy. Their consensus was: more of the same. Canada’s relatively strong economic position – due to the strength of our financial institutions and years of deficit fighting – still faces "modest" growth prospects in the range of 2 to 2 ½ per cent.
Poll results were also released that revealed Canadian’s views on their economic prospects for 2012. In general, Canadians are pessimistic about the economy and their own financial situation. They have little faith that sound decision-making in Canada and abroad will improve their financial situation. Consumers fear our fiscal debt, taxes, user fees and inflation will erode their standard of living.
Their concerns over "political risk" are echoed clearly by the economists: that a lack of sound fiscal decision-making in the United States and a lack of leadership in addressing the sovereign debt crisis in Europe has the potential to devastate our economy and our individual prosperity.
The Ontario Federation of Agriculture (OFA) has recognized this tenuous economic condition. We will be advising our governments accordingly, as they develop their budgets for the coming year in the midst of this fragile economic situation of low consumer confidence, high debt and moderate to low growth.
Our advice will be simple: make intelligent investments and practice good government.
We know that prudent investment in agriculture – in bankable risk management programs, in research and environmental stewardship – pays dividends. Smart investment in infrastructure will stimulate the economy and support growth in the agriculture and agri-food sectors which are leading economic engines in Ontario.
Good government means ensuring that regulations protect the public interest while supporting and encouraging, rather than stifling, economic activity in the agriculture and agri-food sectors.
As the OFA refines the details of our submission to government, we invite members to offer their strategies for economic recovery. Together we can advocate for supportive, economically stimulating measures in the budget to secure a brighter and more sustainable future in Ontario and across Canada.
Comments
Warren Jibb says on January 12, 2012 at 9:11 PM
I agree with the report given by Debra.Great work.
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