A senior Bank of Canada official says the need to improve productivity has reached an urgent level as the economy faces a future where inflation could pose a greater threat than in recent decades .
In a speech, the central bank’s senior deputy governor, Carolyn Rogers, said a low-productivity economy cannot grow fast enough before inflation takes hold.
But, she says, an economy with high productivity can grow faster, create more jobs and generate higher wages with less risk of inflation.
Ms. Rogers says that when you compare Canada’s recent productivity record with that of other countries, what stands out is how far the country lags behind in investment in machinery, equipment and intellectual property.
She added that Canada needs to ensure that the training and education we provide teaches the skills we need, while a more competitive business environment would also help foster greater innovation and efficiency.
This speech comes ahead of the Bank of Canada’s next interest rate decision and monetary policy report, scheduled for April 10.
To watch on video