Prime Minister Stephen Harper Bids Farewell to 2011 and is Cautious For 2012

Prime Minister Stephen Harper warned of a difficult year ahead during a year-end interview with CTV in December. Although the country faired relatively well during the recession in 2009 and subsequent downturn in 2010 and 2011, Canada is not out of the woods yet, he says.

“We have some major challenges in front of us,” says Harper. “There’s going to a be a whole range of areas where this government’s going to be taking issues over the next year to secure the sustainability of our key programs.”

Overall, the federal government is projecting modest two per cent economic growth over the next year, and promises spending cuts will be modest. Canada’s deficit is expected to shrink 25 per cent this year.

The U.S.’s economic status remains a concern, says Harper, but is not the source of any immediate crisis.

The European debt problem, however, is another matter. Canada remained largely unaffected by problems in the European Union in 2011, but as major trading partners, it is unlikely 2012 will pass without having an effect on Canadian industry.

Harper says this government is intent on selling oil to China to keep the economy in shape. “We still need to find some ways that this country can continue to grow, even if our major partners and allies are not,” he says. “I am very serious about selling our oil off this continent, selling our energy products off to China.”

Immigration could mean a boost to the economy, especially involving credential recognition, but an improved system has to be more than “passively accepting applications.”

‘We have to recruit people to come to this country, particularly when there are specific skill shortages that are developing, and that’s what we are going to do as a government,” says Harper.