Quote:
Originally Posted by dyna mo
10 years.
Standard & Poor's took away Canada's AAA rating on debt denominated in foreign currencies in 1992.
But Ottawa recovered the grade in 2002 after reducing government spending as a fraction of GDP by more than eight percent, through a series of stringent spending cuts.
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Story is here:
http://fullcomment.nationalpost.com/...ur-aaa-nation/
"Between 1995 and 1998, government (Canadian) spending was chopped by an impressive 14%. While some of the cuts, particularly to defence spending, had lasting negative effects, the overall effort saved the international community?s confidence in Canada as a safe place to invest. The result was that Canada?s federal debt-to-GDP ratio dropped from a whopping 70% (not much lower than where the United States is now) to under 30% in 2008."