Federal Finance Minister Jim Flaherty said he’s ‘cautiously optimistic’ about the Canadian economy following Friday’s report on the second quarter GDP.

Flaherty said the 1.8 per cent annualized growth rate is modest, but they underscore Canada’s relatively strong position on the global stage.

“Indeed Canada continues to have the strongest economic growth of all of the G7 industrialized countries,” he said, Friday.

In addition, he said he’s encouraged by the 9.4 per cent growth rate in business investment.

However, he warned that the economy still faces risks because of global economic growth concerns, and the federal government could act to stimulate the economy if necessary.