OTTAWA, Ontario - A prominent think-tank says Canadian government stimulus packages had little to do with last year's economic recovery, crediting private investment and increased exports for the rebound.
The Fraser Institute says spending packages by both federal and provincial governments had a minimal impact on last year's improvement in Canada's gross domestic product, the key measure of economic strength.
The Vancouver-based group, which is an advocate of free-market economic policies, released a report saying stimulus measures contributed just 0.2 per cent to GDP growth between the second quarter and third quarter of 2009.
In contrast, official statistics indicate the economy grew by 1.1 per cent over the same period.
The report says government spending and investment contributed nothing at all to the one per cent improvement recorded between the third quarter and fourth quarter.
The report was compiled by analysing Statistics Canada data on the economic impact of government spending and investment as well as private sector activity.
The institute says its findings are not surprising considering Ottawa earmarked 40 per cent of its stimulus funds for infrastructure projects, which take time to implement.
