Weak competitiveness dragging down Canada’s long term prospects, IMF warns
The team of IMF economists that keeps an eye on Canada just completed its annual field trip to the True North. The visitors’ takeaway: We’re edgy, but not in the cool way.
“Economic anxiety is high,” they observe in the concluding statement on their 2018 mission, which ended in Ottawa on June 4 and included a couple of extended trips in May with stops in Vancouver, Montreal, Quebec City, and Toronto.
The International Monetary Fund is used to dealing with states on the brink of collapse, so it’s important to keep things in perspective: angst over our inability to build a pipeline is different than the stress induced by hyperinflation or mass layoffs when a country can’t pay its bills. Canada’s gross domestic product grew three per cent last year, which the IMF called “robust.” It predicts growth of about two per cent this year and next, which is faster than the country’s non-inflationary speed limit.