The previous Bank of Canada governor spoke at an Economic Club of Canada event in downtown Toronto today alongside former federal finance minister John Manley.
Poloz says higher government spending is leading to lower investment rates and productivity growth in the private sector. Meanwhile, Manley says productivity would improve with more investment, but that Canada is failing to help its companies reach a scale where they can be highly productive.In March, a senior Bank of Canada official said the need to improve productivity has reached an "emergency level" with inflation becoming a bigger threat to the economy.
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