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Bonds News

UPDATE 1-Canada will see more job losses in 2009 - Flaherty

(Adds quotes, background from paragraph four)

OTTAWA, March 13 (Reuters) - Canada will continue to see job losses for several months to come and will experience a difficult 2009, Finance Minister Jim Flaherty said on Friday.

Flaherty was speaking to Toronto radio station CFRB shortly after Statistics Canada said net job losses in February were 82,600, a worse figure than had been expected.

“We know that overall in manufacturing and so on we’re going to continue to see job losses. When one looks at the overall figures we’re going to see continuing deterioration for several months at least,” he said.

Flaherty spoke to CFRB from Britain, where he is meeting finance ministers from the Group of 20 nations.

A string of recent economic data show Canada is sliding deeper into recession as the global crisis starts to bite.

“I think it’s fair to say that we’re in the midst of this recession now and the impact on Canada,” Flaherty said, noting that Canada was not doing as badly as the United States and other developed nations.

“We’re relatively well off but we’re going to go through a difficult 2009,” he said.

The Canadian government plans to spend around C$20 billion ($16 billion) this year on measures to stimulate the economy.

Asked when the money would start to flow, Flaherty replied: “I think we’re looking at a matter of months. We’re going to be able to start spending the stimulus money April, May, June -- that’s the beginning of the construction season.” ($1=$1.27 Canadian) (Reporting by David Ljunggren; Editing by Tom Hals)

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