Overview
- Deputy Governor Nicolas Vincent said Canada is stuck in a “vicious circle” of weak productivity and called it a systemic problem requiring economy-wide action.
- Vincent urged policymakers to streamline regulation to improve the investment climate, increase competition in concentrated sectors, and invest in training and credential recognition.
- He highlighted sectors such as telecommunications, passenger transportation and financial services as areas where limited competition hinders new entrants and innovation.
- Canada’s average annual labour productivity growth has fallen from about 3% in the 1960s–70s to roughly 1% in 2000–2019 and now below 0.5%, leaving incomes and resilience weaker.
- He warned that rising international tensions and U.S. trade policy make reform more urgent, even as the Bank itself cannot enact fiscal or regulatory changes.