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Canada has a productivity problem. Will Budget 2024 help? – National [Video]

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Productitivity

The Liberal government’s 2024 federal budget unveiled billions of dollars designed to boost Canada’s flagging productivity.  But some experts are questioning whether the budget does enough and whether the measures will be undermined by the new changes to the country’s capital gains taxes.

“Is this really going to fundamentally pivot the thinking in Canada around higher productivity generally?” former parliamentary budget officer Kevin Page said on Tuesday, after the budget was unveiled.

“These measures can’t do it.”

Labour productivity is a measure of the real gross domestic product (GDP) created by the hours worked across Canada’s economy. Doing more with the same or fewer resources can bring higher wages, more jobs and faster growth, according to the Bank of Canada.

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Canada’s productivity rose slightly at the end of last year after declining for six quarters in a row, Statistics Canada said in December.

In March, Bank of Canada Senior Deputy Governor Carolyn Rogers called …

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