Fitch points that "years of fiscal responsibility and a strong institutional setting created the conditions for an effective fiscal policy response to the global financial crisis." In fact, "the 2012 budget bolsters the country's fiscal position as it delivered on previous commitments to rein in expenditure and withdraw the stimuli in a timely manner."
The Canadian electorate provide support to the "fiscal discipline" in the "May 2011 elections," Fitch continues. Currently, 2012's "budget also incorporates additional specific consolidation efforts and addresses fiscal pressures coming from an aging population, a key credit risk for fiscal sustainability in the medium term."
As key risk, Fitch says that "high level of household debt," and as "housing demand has increased, real estate prices have been going up," the Canada's economy has become "more vulnerable to adverse shocks due to elevated household indebtedness."