Harper says too early for Canada to declare sound economic recovery

OTTAWA, March 11 (Xinhua) -- Canadian Prime Minister Stephen Harper said Thursday that it's too early for Canada to declare that it has successfully surpassed the global economic recession, saying many "possible potholes in the road ahead."

"Today, we are emerging from the global recession," Harper said in the House of Commons. "Our domestic demand is strong. But our export markets remain uncertain, and so, we are recovering slowly, though with a growing sense of optimism."

Harper was reacting to the throne speech delivered last week by Governor General Michaelle Jean, which laid out the government's agenda for 2010.

"It is true that our unemployment rate is still too high," he said. "But, thankfully, unemployment in Canada remains well below the levels seen in the recessions of the 1980s and 1990s, well below levels in the United States and elsewhere. And Canada's economy, unlike most, is already beginning to create some net new jobs."

Harper said that the deficit must begin to come down, modestly now, but quickly, by next year, adding that the government should avoid the absolute levels of reduction and the kinds of devastating cuts to core services like health care, pensions and education.

He said the measures the government has taken, including the financial stimulus plan and a budget that focuses on debt-reduction and economic growth meant to spur job creation, will ensure Canada emerges from the recession in the "strongest position of any first-tier economy."

"In total, our Economic Action Plan is mobilizing a sixty-two billion dollar shot in the arm to the Canadian economy," he said. "We are introducing new measures to support Canada's strong and competitive financial sector, and to give business access to the financing they need to support the recovery and longer-term growth."

According to the budget for 2010 which was released last week, Canada' s plan to get ahead of its 54 billion Canadian dollars deficit is built largely on the back of 17.6 billion Canadian dollars worth of savings over the next five years that will come from streamlining and reducing the operating and administrative costs of government departments.

However, Harper's speech was criticized by opposition Liberal Leader Michael Ignatieff, who said it had no new ideas and was full of gimmicks that ignore important issues like health care and clean energy innovations.