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Economic Viewpoint

Is low business productivity really an issue?

December 5, 2016
François Dupuis, Vice-President and Chief Economist • Benoit P. Durocher, Senior Economist

Several hypotheses have been put forward in recent years to explain low productivity growth in Canada, and in several other industrialized countries. While structural differences may partially account for some weaknesses, problems with estimating production and price growth (due to the impact of new technologies, among other things) are also being blamed. However, despite the estimation problems, the goal is the same: greater efficiency and competitiveness. This is especially important given the many challenges created by the surge in protectionism and Canada’s ageing population.

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