No regrets about deficit: PM

Prime Minister Stephen Harper said Wednesday there are signs of a fragile recovery for the Canadian economy, but warned there could be more job losses if the U.S. sputters.

TORONTO — Prime Minister Stephen Harper said Wednesday there are signs of a fragile recovery for the Canadian economy, but warned there could be more job losses if the U.S. sputters.

“We shouldn’t kid ourselves, we were pulled into this recession by events outside of our borders and we very much could get surprises,” Harper said.

“We could still see some job losses.”

Speaking during a question and answer session at an economic conference in Toronto, Harper said he believed the world was in the beginnings of a global recovery, but added it’s one he would currently class “as very fragile.”

“We can be optimistic but we should not be over-confident.”

For the immediate future, he said, the focus has to continue to be on stimulating the economy.

The prime minister also said he had no regrets about posting a deficit, arguing it was the best move under the circumstances, and noted that several measures the government has taken will benefit the economy in the longer term.

“I actually do think we are in a rare period . . . where deficits are not only necessary but actually advisable,” said Harper.