Canada should see modest economic growth and avoid a double-dip recession, Finance Minister Jim Flaherty said on Wednesday.

The economy shrank slightly in the second quarter, and Bank of Nova Scotia said this week the country may already be in another recession, but Flaherty said that is not what he is seeing.

Canada's economy among the advanced economies is performing relatively well, but we are seeing quite modest growth and we have to be conscious always of the danger of shocks to our economy from outside, from the troubles in the European Union or weakness in the U.S. economy, he said when asked about the possibility of a new recession.

The numbers we have seen from the economists indicate that we will have continued modest growth in the Canadian economy.