Governor Tiff Macklem talks about the importance of trade and exports to Canada’s economic recovery. He also talks about steps policy-makers and business can take to attract investment and improve competitiveness.
Exports are key to a sustainable recovery
Canada’s recovery from the pandemic will be long and choppy, and we need to expand our exports to help the economy recover fully. Trade has bounced back since the initial shutdowns at the start of the pandemic, but obstacles remain. Companies and policy-makers must work together to create a better path for trade growth.
Hope is not a strategy. We need to think strategically to increase the odds of a strong trade recovery.”
More products mean more markets
Canada’s traditional strength has been to export raw materials and manufactured goods to a few key markets, such as the United States. More recently, we’ve benefited from exports of services, including education, digital technology and tourism. For the economy to recover fully, Canada needs to continue to expand the types of things we export and find more markets for the goods and services we want to sell.
We do need to develop new, fast-growing markets for our products, but we also need to develop new, fast-growing products for our markets.”
Better productivity will boost competitiveness
Canada must improve our productivity to compete and win in global markets. Businesses can boost productivity by investing in machinery and equipment, research and development, and employee training. Policy-makers can help by removing barriers to business investment and by improving infrastructure and education.
We won’t be able to fully capitalize on our opportunities unless we take steps to improve our productivity and competitiveness.”
The Bank of Canada will help
The Bank has lowered interest rates to historic lows to support the economic recovery. That means borrowing costs have never been lower. The Bank will continue to support this investment climate by keeping borrowing costs low until economic slack is gone.