Posted 3/26/2024, 1:29:12 PM
Canada Faces 'Productivity Emergency' Hurting Inflation Fight and Living Standards, Bank of Canada Warns
- Bank of Canada warns Canada has a "productivity emergency", making it harder to control inflation and hurting living standards
- Canada's productivity has declined sharply compared to the U.S. and other G7 countries over the past few decades
- Weak business investment in machinery, equipment, etc. is a major culprit for poor productivity
- Lack of competition in many sectors of the economy and problems integrating skilled immigrants also contribute
- Boosting productivity would make it easier for the Bank to control inflation without relying as heavily on interest rate hikes
