The following is excerpted from 18 September 2013 article by the Financial Post.
Stephen Poloz is confident the Canadian economy will soon return to "natural growth," and on Wednesday, he set out the course .. the country needs to follow to get there.
"I anticipate that the Canadian economy will normalize and growth will become natural, in contrast to the economic activity of the past six years, which has been fuelled by policy, including record-low interest rates," the Bank of Canada governor said in the text of a speech being delivered in Vancouver.
"Natural growth will be self-generating and self-sustaining, and the economy will be growing at its potential, as its productive capacity expands," Mr. Poloz told the Vancouver Board of Trade.
"New ideas, new products and new ways of producing them are often the seeds of new companies," he said. "New companies create new jobs, which create new incomes, which get spent creating a virtuous circle of self-sustaining growth. That's what makes it natural."…
"Understandably, Canadian firms have been reluctant to add new capacity until the U.S. economic recovery gains traction and is more certain," he said in his Vancouver speech. "Evidence suggest we are now close to the tipping point from improving confidence into expanding capacity."
Craig Alexander, chief economist at TD Economics, said Mr. Poloz's speech still had "quite an optimistic tone."
"[But] It acknowledges that we haven't see the rotation toward exports and investments in the way the bank had hoped."…
This article is available in its entirety at http://business.financialpost.com/2013/09/18/stephen-poloz-canada-close-to-tipping-point-for-business-investment/ (subscription may be required.)