Trudeau vows to steer Canadian economy clear of virus slowdown
Prime Minister Justin Trudeau promised his government will protect Canada's economy from a possible slowdown due to the outbreak of coronavirus.
The Canadian leader -- speaking Tuesday morning after Group of Seven finance ministers and central bankers held a conference call on the global health crisis -- also opened the door to government aid for affected businesses and industries.
"We will continue to ensure that the economy does not become subject to a slowdown that would hurt Canadians," Trudeau said in Halifax, Nova Scotia. "But this is a global context that we are facing and we don't have total control."
Finance Minister Bill Morneau took part in the G-7 call, which stopped short of spelling out a specific policy response. Trudeau said Canada will continue to work with its partners "to try to make sure there is a lesser impact on the global economy."
After he spoke, the Federal Reserve made an emergency half-percentage point interest rate cut to shield the U.S. economy from "evolving" coronavirus risks. The Bank of Canada has a rate decision scheduled Wednesday morning at 10 a.m. in Ottawa, with investors increasing their bets it will follow suit.
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Trudeau wasn't asked specifically about a potential fiscal response from the government, but he did say targeted aid is an option. "There will be impacts on Canadian businesses, on entrepreneurs, and we will always look for ways to minimize that impact and perhaps give help where help is needed."
When asked why Canada wasn't taking as strong public-health measures as other countries, Trudeau said his government is following recommendations from the World Health Organization. "There are a number of countries that have made different choices but we are confident that what we have done in Canada, and what we continue to do in Canada, is right for Canada," the prime minister said.
Health Canada has reported a total of 27 cases of coronavirus spread between Ontario, British Columbia and Quebec, with no deaths domestically so far.
While the WHO has yet to declare the outbreak a global pandemic, there have more than 92,000 cases and 3,100 deaths worldwide.