Canada Faces Weaker Growth


    Canada’s aging population will soon starting impacting the growth potential of the Canadian economy, says a Desjardins Capital Markets report. It predicts growth will be weaker for the coming years which will weigh on profits and stock prices. An aging workforce means output growth potential “will remain rather limited.” This “will have consequences for several facets of the economy, including job creation, interest rates, and the stock market.” For this year, it sees growth of just 2.2 per cent, the average annual growth rate in recent years. But the combination of very soft growth in total hours worked and annual labour productivity “implies that Canada’s potential for economic growth will remain between 1.5 per cent and two per cent from now until 2030.”