So, although we see the trend of inflation moving back inside the target range in the near future, on balance it will probably be somewhat lower in 1998 than previously expected. I would also like to underline the additional progress made during the year in the area of public finances, where government deficits have been further reduced.
More importantly, the ratio of public debt relative to the size of our economy is finally falling. This is a major contribution towards the sounder economic foundations that I mentioned earlier. Altogether then, 1997 turned out to be a good year for the Canadian economy. Prospects for 1998 and the ’Asian factor’ But what about prospects for the current year?