Finance Minister Jim Flaherty sees little risk of slower North American growth sparking another recession.
"I do not think the risk is great, but there are risk indicators about which we are concerned," Mr. Flaherty told reporters at the International Economic Forum of the Americas.
He said he is worried about softness in the U.S. real estate market and the lack of a clear long-term plan to deal with the U.S. deficit, and debt problems in the U.S. and Europe. "Softness in the real estate market puts a damper on consumer confidence in the United States," he said.
Mr. Flaherty said the risk to the economy was known going into budget planning and was taken into account.
Finance officials revised downward the economic forecast of private-sector economists, anticipating $1.5-billion less in annual revenue. "We've taken some concrete steps to recognize the risks that are out there," he said.