08/06/2011 08:10 EDT | Updated 10/06/2011 05:12 EDT

Jim Flaherty: Canada Economy Could Be Shaken Up By Global Problems


OTTAWA - Finance Minister Jim Flaherty says the recent stock market turmoil may cause some turbulence for the Canadian economy.

But Flaherty says Canada is well-positioned to withstand the "global headwinds."

Flaherty issued a statement this weekend responding to the uncertainty that sent stock markets into convulsions Thursday and Friday.

He says Canada is "not an island" and may eventually be affected by the uncertainty about U.S. growth and Europe's continuing debt problems.

But Flaherty notes that Canada's budgetary position is among the strongest in the world and its financial systems remain strong.

French Finance Minister Francois Baroin says he has been in contact with his G7 counterparts, who include Flaherty, this weekend.

Both the S&P/TSX composite index and the Dow Jones industrial suffered massive losses Thursday.

It carried on into Friday for the TSX, but the Dow staged a slight recovery.