UPDATE 1-Stimulus boosted Canada Q4 GDP 2.2 pts – official

* Says actions created or maintained 130,000 jobs

* G20 nations should now look to exit stimulus programs
(Adds details)

OTTAWA, May 13 (BestGrowthStock) – Stimulus spending boosted
Canadian economic growth by 2.2 percentage points in the fourth
quarter of 2009, according to government estimates, a senior
finance official said on Thursday.

Tiff Macklem, Canada’s associate deputy finance minister,
disclosed the figure during an appearance at a conference in
Ottawa.

“What you can see is that the decline in (gross domestic
product) in the second quarter is reduced by about one and a
half percentage points, the third quarter moves from a small
negative to a small positive and then the fourth quarter adds
about 2.2 percentage points to growth,” Macklem said as he
pointed to graphs on a slide presentation.

Macklem estimated Ottawa’s two-year fiscal action plan has
created or maintained 130,000 jobs so far and is on track to
create or maintain 220,000 jobs by the end of this year.

Although he argued fiscal stimulus was effective, Macklem
said the G20 group of emerging and industrialized nations must
make public their plans for withdrawing that stimulus and
avoiding piling up excessive debt.

“There’s no doubt that this played an absolutely
instrumental role in averting a much worse crisis,” he said.

“Now, as we approach the next G20 summit, the Toronto G20
leaders summit to be held at the end of June, we’re starting to
come out the other side and clearly its going to be time to be
looking very seriously at elaborating clear fiscal exit
strategies.”

Investing Analysis
(Reporting by Louise Egan; writing by Jeffrey Hodgson; editing
by Rob Wilson)

UPDATE 1-Stimulus boosted Canada Q4 GDP 2.2 pts – official