Protectionism and lack of investment are hobbling Canada's economic potential, report argues

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Canada on path to fall behind in competitiveness and experience a slow erosion of living standards, report says. Read more

“Poor investment in Canada not only deprives our economy of growth opportunities, it means that our firms lag their global peers in their capacity to conquer global markets, and that they may fail to take advantage of the vast possibilities permitted by our trade agreements with major economies,” it said.

“Rules and tax structures need to be adapted to a world that is rapidly expanding the potential and applications of digitalization, where a rising share of economic value is generated by intangible assets,” the report said, adding that some initiatives are already underway and should be “pursued with vigor and a sense of urgency.”

The report’s authors, members of the governmental affairs and public policy group at Bennett Jones, said raising the share of national income devoted to investment would reduce the share available for current consumption but it would provide a foundation for long-term prosperity. “Hikes in the policy interest rates of central banks have helped to moderate demand and rates need to be high for longer.

 

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