Schembri: mix of factors holding back Canadian investment

Lawrence Schembri
Bank of Canada

A mix of cyclical and structural factors have combined to hold back Canadian investment, despite a solid recovery post-2008, the Bank of Canada’s Lawrence Schembri said on March 21.

The deputy governor pointed to two key cyclical factors affecting investment in recent years: a sluggish recovery in the US; and sharp drops in commodity prices, particularly oil. On the structural front, population ageing has led to a “marked slowdown” in labour force growth and an attendant “strong headwind” to

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