Canada is expected to move up in the ranking of international economic performance in 2009 and 2010 because other countries have been harder hit by the global recession, according to a report from the the Conference Board of Canada.

After obtaining a low “B” grade and an 11th place ranking out of 17 comparator countries in 2008, Canada is expected to move up to 5th spot in 2010 –narrowly missing an “A” grade.

“Canada is expected to weather the global recession better than most of its peers, which is a credit to its stable financial sector and a relatively healthier economic position upon entering the downturn,” said Glen Hodgson, senior vice president and chief economist.

“But achieving a higher rank because other countries are falling farther is not the basis for sustainable prosperity. Some of Canada’s fundamentals, such as labour productivity, remain weaker than those of the global leaders,” Hodgson said.

According to the report card, which is based on the recent OECD Economic Outlook, Canada’s relative ranking is expected to improve on GDP growth, unemployment rate, employment growth inward foreign direct investment (FDI) performance index, and outward FDI performance index.

Despite substantial movement among the 17 countries, the top and bottom positions are not expected to change between 2008 and 2010. Norway is expected to retain first place in the Economy ranking in both 2009 and 2010. Norway’s economy has been more resilient than most, and it is partly protected from current economic conditions by its large petroleum sector.

At the bottom of the rankings, Ireland is forecast to remain in 17th place on overall economic performance in 2009 and 2010.

In addition to Canada, Belgium and the United States are forecast to move up over the next two years. After being hard-hit in both 2008 and 2009, the U.S. is forecast to move from 8th position in 2008 to 3rd position in 2010. The U.S. is the only comparator country that is not expected to have additional decline in employment next year.

The United Kingdom is among the countries expected to fall sharply in overall economic performance between 2008 and 2010. The report notes that he financial crisis has had a severe effect on UK credit markets and housing prices, leading to a contraction in consumer spending and business investment. The Netherlands and Switzerland are also expected to fall sharply in the ranking.

How Canada Performs is the Conference Board’s annual benchmarking analysis, which the Board has conducted since 1996.

IE