The following is excerpted from a 4 October 2012 commentary by Peter G. Hall of Export Development Canada.
Productivity growth is key to Canada’s future. It ranks as a top economic priority for business, government and indeed, the general public, as well it should. After all, together with the labour force and our national capital stock, it’s one of the three foundational economic pillars. Not one of them is in great shape – adding up their collective trend performance gives future growth of as little as 1.5 per cent. An about-face in productivity growth could change the picture for the better – but is it likely?
Since 1996, OECD labour productivity has grown 1.5 per cent annually. At the same time, Canada’s average growth was 0.9 per cent. That’s just half the US pace, opening up a 15 per cent productivity gap over the past 16-years. Our inferior growth at best suggests considerable room for improvement, and at worst poses a substantial threat to our long-run competitiveness.
This commentary is available in its entirety at:
http://www.edc.ca/EN/Knowledge-Centre/Subscriptions/Weekly-Commentary/Pages/import-of-productivity.aspx
Topic(s)
International Trade and Border Management
Information source
Canadian News Channel
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