(Export Development Canada – Peter G. Hall)
Gloom abounds in the world economy, and with good reason. Surviving the current episode is critical, but growth eventually will recover, and hopes for longer-term prosperity will brighten. Strategies for success in the coming growth cycle are already being crafted. Is Canada well-placed to succeed?
Canada’s economic challenges don’t end when recovery begins. At that point, market watchers will no doubt say in unison, “The long run is now”. Ageing of the population is no longer tomorrow’s issue, as Canada, for the first time ever, soon moves to the point where potential retirees outnumber young labour force entrants. Low trend investment threatens to further hobble recovery, and Canada’s poor productivity record won’t help. What makes these challenges more serious is that they affect the key building blocks of the economy: labour, capital and productivity. Future constraints on all three elements have led to estimates of potential growth that pale in comparison to recent experience.
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