September 24, 2010 / 5:32 PM / in 7 years

Canada's Flaherty concerned by U.S. weakness

TORONTO (Reuters) - Canadian Finance Minister Jim Flaherty said on Friday he is concerned about the effect of the U.S. economy’s sluggishness on Canada’s recovery, but noted that the U.S. economy is still growing, albeit slowly.

<p>Finance Minister Jim Flaherty speaks during Question Period in the House of Commons on Parliament Hill in Ottawa September 20, 2010. REUTERS/Chris Wattie</p>

Flaherty, speaking to reporters in Toronto, also said that he is concerned about Canadian dollar volatility and how it will effect the recovery.

“What we are concerned with consistently is any volatility in the currency ... The reality is, there is weakness in the United States’ economy, and there is also relative fiscal weakness compared to the fiscal strength we have at the federal level in Canada. So, compared to the U.S. dollar, we have a relatively strong position.”

“The concern from my point of view dealing with fiscal policy is volatility. When we do see volatility it’s very difficult for businesses ... to plan.”

Reporting by Ka Yan Ng, writing by John McCrank; editing by Peter Galloway

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