Canada Due For Boring I Beautiful Budget
March 1, 2010 by Dave, Cindy and Amanda Walker · Leave a Comment
By Jeffrey Hodgson TORONTO (Reuters) – Global investors ravaged by rising sovereign risk will find welcome respite in Canada’s March 4 federal budget, with controlled leaks and relatively healthy finances making it a refreshingly low-key event for markets.
In stark contrast to the Greek budget tragedy unfolding in Europe, Canada is expected to forecast a deficit of less than 3 percent of gross domestic product, the lowest of any Group of Seven nation.
And Finance Minister Jim Flaherty and his officials have spent weeks diligently stealing their own thunder, pre-releasing major news like mortgage rule changes and stressing there will be no significant new spending or tax measures.
“It doesn’t make for a great exciting story. But, guess what? For investors, boring is beautiful. That’s the new beautiful,” said Stewart Hall, an economist with HSBC Securities.
