Carney expects Canada to avoid recession

Carney said the best way to respond to the “enormous shock” in the global economy created by the conflict is by tackling affordability issues at home, building more homes and accelerating the approval of large nation-building projects.

“Its absolutely clear and has been reinforced again by events in the Middle East: we have to make our economy stronger and more independent,” Carney said.

Quoting Tuesday’s International Monetary Fund (IMF) outlook, the prime minister said he expects Canada to avoid a recession.

“The expectation, even in the wake of one of the big economic shocks, is that Canada will be the second-strongest economy … in the G7 this year and next,” he said.

The IMF predicted Tuesday that the fastest-growing economy this year would be the U.S. at 2.3 per cent, followed by Canada at 1.5, France at 0.9, Germany and the U.K. at 0.8, Japan at 0.7 and Italy at 0.5.

A day after sweeping three byelections in Ontario and Quebec that gave him a majority in the House of Commons, Prime Minister Mark Carney has announced that he is temporarily removing the federal excise tax on gas and diesel.

The move means that the cost of gas will drop by ten cents on a litre of gasoline and four cents per litre of diesel starting Monday and lasting until Labour Day.

The fuel tax holiday, which Carney said would also see the four cent per litre excise tax removed on aviation fuel, is expected to cost an estimated $2.4 billion.

“We all know that because of the war with Iran fuel prices have increased sharply around the world including right here in Canada,” Carney said in Ottawa Tuesday.

The move will act as a bridge to help get Canadians over “short-term pressures,” he said.

“Today’s cut to the fuel excise tax is a responsible temporary measure consistent with what it takes to build a stronger economy, a more affordable economy combined with sound fiscal management