POLITICS

Flaherty says GDP 'modest' but underscores Canada's strong economic position

08/31/2012 09:41 EDT | Updated 10/31/2012 05:12 EDT
TORONTO - Finance Minister Jim Flaherty says while the latest economic growth numbers are "modest" they underscore Canada's strong position on the global economic stage.

Flaherty says Canada continues to have the strongest economic growth among the G7 countries in the wake of the global recession.

Statistics Canada reported today that the economy grew at an annual rate of 1.8 per cent in the second quarter.

The pace of growth was slightly higher than economists' expectations and nearly in line with the Bank of Canada projection for 1.9 per cent.

But it's the third quarter in a row for sluggish economic performance below two per cent.

Statistics Canada says investment in plant and equipment grew at its fastest pace since this time last year and non-farm inventories surged during between April and June.

Flaherty says he was particularly encouraged by investment growth, adding it's something he'd like to see more of.

But exports slowed and imports rose substantially.