Prices are rising, but real incomes are not. The study says among the likely reasons for that, which the Bank of Canada itself has highlighted, is weak business investment and consequently low productivity.
New business investment per worker in Canada was slightly over 50 cents for every dollar invested in America per worker in 2021, the lowest it has been since the beginning of the 1990s. The fact that capital spending has not rebounded during this year’s oil boom reflects both a “hostile” regulatory environment and investors who are skeptical about the future of fossil fuels, said the report.
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