While markets are calmer and China's economic problems look more manageable, top finance officials are struggling to deal with a fragile global recovery. Growth is too anemic to alleviate the problem of stagnant wages.
More than 60 per cent of Canadians are either delaying or outright cancelling big purchases, while a quarter of them are spending less on vacations over concerns about the state of the economy, according to a CTV News/Nanos survey on consumer confidence.
Political strategists say that Finance Minister Bill Morneau will need to lower expectations as he crosses the country during his pre-budget consultation tour, and one says the economy is so bad he might consider hiking the GST.
Changes to the Canada Pension Plan will be on the agenda during the annual finance ministers meeting on Sunday and Monday, as provincial and territorial finance ministers meet with their federal counterpart in Ottawa.