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Canada to exit pandemic with lower growth potential, permanent labour force scarring

from Financial Post

The Bank of Canada's top deputy said the country is likely to come out of the pandemic with a lower outlook for potential growth and permanent labour force scarring, and that conventional wisdom must be challenged to find solutions. In a recent speech, Senior Deputy Governor Carolyn Wilkins reiterated the central bank projects potential output will be 3 per cent lower by the end of 2022 versus their pre-pandemic forecast, with weak capital investment accounting for the bulk of the reduced potential. more


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