{"id":59391,"date":"2025-05-06T17:53:30","date_gmt":"2025-05-06T17:53:30","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/05\/06\/carneys-top-priority-should-be-raising-productivity-says-david-dodge\/"},"modified":"2025-05-06T17:53:30","modified_gmt":"2025-05-06T17:53:30","slug":"carneys-top-priority-should-be-raising-productivity-says-david-dodge","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/05\/06\/carneys-top-priority-should-be-raising-productivity-says-david-dodge\/","title":{"rendered":"Carney&#039;s top priority should be raising productivity, says David Dodge"},"content":{"rendered":"<p> \n<br \/><br \/>\n<iframe loading=\"lazy\" title=\"Canada faces &#039;ultra-low growth&#039; for next year: David Dodge\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/OLGsKxEeNTU?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><br \/>\n<\/iframe><\/p>\n<p> The newly-elected Liberal government\u2019s top priority should be <\/p>\n<p>                raising Canada\u2019s productivity<\/p>\n<p>                , according to former Bank of Canada governor <\/p>\n<p>                David Dodge<\/p>\n<p>                . <\/p>\n<p> \u201cGrowth is the key thing for this government,\u201d he said in a <\/p>\n<p>                recent interview<\/p>\n<p>                 with the Financial Post\u2019s Larysa Harapyn. But it won\u2019t come easy. <\/p>\n<p> Dodge said that Canada has gone through the last 15 years with essentially no increase in productivity or in the average income of workers. <\/p>\n<p> \u201cThe key objective is to reverse that, and reverse that at a time that will be very difficult,\u201d he said. <\/p>\n<p> Canada is currently facing more barriers to its exports due to <\/p>\n<p>                United States President Donald Trump<\/p>\n<p>                \u2018s on-again, off-again <\/p>\n<p>                tariffs<\/p>\n<p>                . But it must not let that stop it from making investments that will allow it to grow, Dodge said. <\/p>\n<p><iframe src=\"https:\/\/flo.uri.sh\/visualisation\/22097836\/embed\"><\/iframe><\/p>\n<p> The threat of a looming recession is another challenge facing Canada\u2019s economy. <\/p>\n<p> \u201cWhether it ends up being a recession or whether it ends just being a period of ultra-low growth in the world \u2026 that makes the job of raising productivity here in Canada even more important,\u201d Dodge said. <\/p>\n<p> And it\u2019s not just Trump\u2019s tariffs that will slow down Canada\u2019s economic growth, but a range of his other policies, according to Dodge. <\/p>\n<p> \u201c[Trump] has a real impact on the global economic growth, on economic growth in the United States and inevitably then, on us,\u201d he said. <\/p>\n<p> The slowing economy will also have an impact on the <\/p>\n<p>                Bank of Canada<\/p>\n<p>                \u2018s monetary policy, but Dodge expects only a small reduction in <\/p>\n<p>                interest rates<\/p>\n<p>                 over the next 12 months. <\/p>\n<p> \u201cWe\u2019re already in the neutral range on interest rates,\u201d he said. \u201cThe Bank of Canada will cope.\u201d <\/p>\n<p> Now the economy is in the hands of the government, Dodge said. <\/p>\n<p> \u201cThe big levers of macroeconomic policy are with the government, not with the bank,\u201d he said. <\/p>\n<p> Dodge said that one way to raise productivity is by encouraging innovation, particularly in technology and energy. <\/p>\n<p> \u201cTech is the route to higher productivity,\u201d he said. \u201cThat is absolutely critical.\u201d <\/p>\n<p> The government\u2019s role in that is to build infrastructure for businesses to facilitate raising productivity and making investment more profitable, he said. <\/p>\n<p> \u201cWe have the talent and we have the resources,\u201d Dodge said. \u201cThe issue is to ensure that governments \u2014 federal, provincial and local \u2014 don\u2019t create barriers to making those investments.\u201d <\/p>\n<ul class=\"related_links\">\n<li>Gary Mar: If Mark Carney wants to unlock Canada&#8217;s potential, he must start with the West<\/li>\n<li>As Carney prepares to engage with Trump, fate of CUSMA hangs in the balance<\/li>\n<\/ul>\n<p> Dodge added that Canadians will also have to restrain their consumption in order to release the resources for the investment needed to raise productivity and incomes. <\/p>\n<p> \u201cThat\u2019s the road ahead,\u201d he said. \u201cIt\u2019s not a very pleasant road because in the end, we\u2019re going to collectively, as a nation, have to save more, we\u2019re going to have to invest more.\u201d <\/p>\n<p> <em>\u2022 Email: novid@postmedia.com<br \/> <\/em> <\/p>\n<p> <em><strong>Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add financialpost.com to your bookmarks and sign up for our newsletters here.<\/em> <\/p>\n\n<br \/>Carney&#039;s top priority should be raising productivity, says David Dodge<\/a><br \/>\n<br \/>2025-05-06 17:53:30<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The newly-elected Liberal government\u2019s top priority should be raising Canada\u2019s productivity , according to former Bank of Canada governor David Dodge . \u201cGrowth is the key thing for this government,\u201d&#8230;<\/p>\n","protected":false},"author":2,"featured_media":59392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-59391","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy"},"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/59391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=59391"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/59391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/59392"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=59391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=59391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=59391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}