Canada says on track to meet budget despite GDP drop

Wed May 2, 2012 5:16pm EDT
 
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OTTAWA (Reuters) - The Canadian government is set to meet economic goals laid out in its March budget despite a surprise drop in gross domestic product in February, Finance Minister Jim Flaherty said on Wednesday.

Statistics Canada said on Monday that the economy shrank by 0.2 percent in February from January. Analysts were expecting a 0.2 percent month-on-month increase.

"I'm very cautious about looking at statistics that relate only to one month ... So far I'm comfortable the indicators that I see (show) that we're on track with our budget expectations," Flaherty told BNN television.

(Reporting by David Ljunggren; Editing by Peter Galloway)

 
Bank of Canada Governor Mark Carney (L) and Finance Minister Jim Flaherty laugh while displaying new Canadian 20 dollar bills made of polymer during a photo opportunity in Ottawa May 2, 2012. REUTERS/Chris Wattie