Economic & Fiscal Update: Boosting Investment Key to Economic Growth
OTTAWA (December 5, 2019) — Canadian Manufacturers & Exporters is pleased the federal government recognized in its 2019 Economic and Fiscal Update that Canadian businesses have faced challenges in recent years. Canadian Manufacturers & Exporters (CME) call on the government to help address these challenges by including measure in the 2020 Federal Budget to improve Canada’s business competitiveness.
“The economy’s current growth trajectory, particularly when measured in per person terms, has been underwhelming and clearly show that living standards are barely improving. In fact, real GDP per capita growth is projected to be only 0.3 per cent this year, the fourth time in five years that per capita growth will fail to reach 1 per cent,” said Dennis Darby, President & CEO of CME.
“Low rates of business investment in recent years have slowed down labour productivity growth and thus economic growth,” stated Darby. “Canada is falling behind most other developed economies, including the United States both in terms of business investment and productivity growth.”
Despite recent growth in the fourth quarter, non-residential business investment remains billions of dollars sub 2014 levels. “Unless investment starts turning around, Canada’s labour productivity growth will remain stuck in low gear, further undermining the country’s competitiveness,” added Darby.
CME is committed to work with the federal government to help find ways to make investing in Canada, faster, easier, and more attractive.
Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.
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