Weak Investment and Productivity Pose Threat to Canada, Report Warns

Weak Investment and Productivity Pose Threat to Canada, Report Warns
The CN Tower is seen in Toronto in a file photo. The Canadian Press/Colin Perkel
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Weak investment and productivity will continue posing a threat to Canada’s economy over the long term, despite interest rate cuts providing some relief, according to a new report by the professional services firm Deloitte.

“Canada’s chronically weak productivity and significant increases in unit labour costs are creating risks that inflation may stay above the Bank of Canada’s target range for longer, as large wage increases without productivity gains are inflationary,” said the report, titled “Hurdles remain amid signs of recovery.”