‘Pro-growth reforms’ needed to spur business investment, productivity: C.D. Howe Institute

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An upcoming publication from the C.D. Howe Institute says pro-growth reforms are needed to address low business investment that has been falling in Canada since 2015, weighing on productivity and living standards.

Nathan Janzen, assistant chief economist at RBC Economics, joins BNN Bloomberg to discuss tackling Canada's productivity problem.

“In 2024, Canadian workers will likely receive only 66 cents of new capital for every dollar received by their counterparts in the OECD as a whole, and 55 cents for every dollar received by their U.S. counterparts,” the report said. “We need pro-growth reforms to stimulate business investment and prevent Canadian workers from being relegated to low value-added activities compared to workers in other countries.”

Levels of business investment per available Canadian worker had been moving toward comparable levels with the U.S. and other OECD peers starting in the early 2000s but that trend ceased in 2015, according to the C.D. Howe Institute.

 

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