Bank of Canada Review - Spring 2017

Key quotes from the recently published Bank of Canada Review for Spring 2017:

• The slowdown since 2014 appears to be linked primarily to the collapse of global energy prices and increased macroeconomic uncertainty 
• Investment is weak relative to past business cycles because there are more factors at play than just demand in the current cycle
• While energy prices have rebounded since early 2016, they remain low relative to their pre-2014 levels. Also, uncertainty remains elevated. The favourable resolution of uncertainty, combined with a broad easing of credit conditions, particularly in the euro area, could support an acceleration of business investment in advanced economies in the coming years
• By supporting both stronger aggregate demand and the long-term potential growth of the economy, accelerated investment can help achieve faster rates of economic growth
• In recent years, advanced economies have experienced a slowdown in the growth of the labour force as a result of an aging population
• A pickup in business investment is expected to occur, a return to pre-crisis rates of growth is unlikely