OTTAWA/TORONTO (Reuters) – Canada’s political leaders should address the underlying problems limiting long-term economic growth and not just campaign on pocketbook issues ahead of the federal election this month, business leaders, economists and foreign investors say.
Canada’s sustainable pace of economic growth, estimated by the Bank of Canada at 1.8%, is not much faster than the rate at which its population is increasing, meaning many Canadians are no better off financially.
None - Parties - Side - Life - Growth
“None of the four parties as far as I’ve observed have talked at all about that side of life, how you generate actual growth, how you generate wealth, how you generate income,” David Dodge, senior adviser at Bennett Jones and former governor of the Bank of Canada, told Reuters.
While the election campaign has focused on issues like cell phone bills and boutique tax credits to quell discomfort among Canadians, economists say that a long-term fix would require increased government and private investment targeted at raising productivity. Canadians vote on Oct. 21.
Canada - Productivity - Growth - Wages - %
Canada’s productivity growth, which drives higher wages, has tended to be lackluster. It rose 0.3% year-over-year in the second quarter, much slower than the 1.8% gain in the United States, the country’s biggest trading partner, official data showed.
A survey by Sage, a cloud business management solutions company, in partnership with market research agency Angus Reid, found last Tuesday that two-thirds of Canadian business owners believe current federal government policies have not helped businesses grow.
Measures - Growth - Allocation - Government - Infrastructure
Measures that would accelerate economic growth include more efficient allocation of government infrastructure spending, reduced duplication of federal, provincial and municipal regulation...
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