TORONTO (AP) — Prime Minister Stephen Harper predicts Canada will emerge from the global financial crisis faster than any other country but said there won't be a recovery until the U.S. financial system is repaired.

Harper promoted Canada's economy Tuesday in what his officials called a major speech.

"Canada was the last advanced country to fall into this recession. We will make sure its effects here are the least severe, and we will come out of this faster than anyone and stronger than ever," Harper said.

Canada has avoided government bailouts and has not experienced the failure of any major financial institution.

There has been no crippling mortgage meltdown or banking crisis north of the border where the financial sector is dominated by five large banks.

Harper noted that the World Economic Forum said recently that Canada had the soundest financial system in the world.

"Canada is receiving rare recognition these days in the United States and around the world for these strengths," Harper said.

"If there ever was a time to put away that legendary Canadian modesty it is now."

President Barack Obama said last month than the United States should "take note" of how Canada has shown itself to be a good manager of its financial system. Harper has said Canada has strong regulation that encourages a cautious culture in the banks.

Canada's dominant banks recently reported earnings that show they are doing far better than banks in the United States and Europe. The stock prices of Canada's banks are down but not nearly as much as U.S. or European bank stocks. Canada's financial system is dominated by five banks, unlike in the U.S. where there are scores of banks.

Canada's banks aren't as leveraged as their international peers. Canadians also pay much higher fees because of the concentrated banking system.

Harper received applause when he noted Canada's strong banks.

"Only a financial crisis can get Canadians to applaud the banks," Harper joked.

The prime minister said in spite of the strength of Canadian banks, the availability and cost of credit in Canada is being affected by the international financial crisis.

The crisis and the global sell-off of commodities have hit Canada hard. Alberta's once-booming oil sands sector has cooled as every major company has scrapped or delayed some expansion plans.

The Canadian economy contracted at a 3.4 percent annual pace at the end of 2008, but it wasn't as steep as the 6.2 percent drop in the United States, the 12.7 percent decline in Japan and the 20.8 percent pullback in South Korea.

"The American economy has been hit twice as hard as Canada. The same is true of the Europeans. The Japanese have been hit four times as hard," Harper said.

"We will not turn the corner on this global recession until the American financial sector is fixed. The immediate source of this global recession is the ongoing crisis of the financial sector in the United States and other advanced Western countries."

Harper's Conservative government unveiled a $32 billion economic stimulus package in January but the bill hasn't become law yet.

Canada lost a record 129,000 jobs in January. The U.S.-equivalent based on labor market size would be over a million jobs lost. The U.S. labor market is about 10 times the size of Canada's.

Canada's job report for February is released Friday.

Canada and the U.S share the largest trading relationship in the world. More than 70 percent of Canada's exports go to the U.S. But Harper said Canada is entering the most difficult period in memory in a position of significant comparative strength.

"Canada should avoid both significant deflation and renewed inflation, both of which are significant risks in other countries," Harper said.

The prime minister won re-election last October despite saying during the campaign that Canadians weren't concerned about their jobs or their mortgages.

He also said in October that the stock market was overreacting to bad news and that stocks were cheap. Canada's main stock exchange is down more than 30 percent since then.