Full business investment rebound unlikely in advanced economies: Bank of Canada

OTTAWA — A new Bank of Canada analysis says it has doubts business investment in advanced economies will accelerate back to its level before the 2007-09 global financial crisis.

The discussion paper says it expects investment spending to see somewhat of a pickup from its lacklustre, post-2014 pace, which has been slowed by low commodity prices and heightened economic uncertainty.

But even as current headwinds fade, the authors predict structural factors such as slowing population growth rates in advanced economies will keep business investment from returning to levels seen before financial crisis a decade ago.

They write that commodity-producing economies enjoyed a brief investment-spending boom between 2010 and 2014 as the demand for resources rebounded and prices climbed.

But since then, the paper says business-investment projections have been consistently over-optimistic and have become a leading source of error in the Bank of Canada’s output forecasts for the United States and Canada.

Last month, the Bank of Canada pointed to the widespread uncertainty about the direction of U.S. trade policy as it downgraded its 2017 business-investment outlook.

Just Posted

WATCH: Red Deer teacher engages students with “cool” science experiments

On Thursday, he made fire dance to the beat of the music

Province purchases land for new Red Deer courthouse

Construction to begin in the fall of 2019

Parking costs in Red Deer are going up — so are parking tickets

City council raises parking rates by 25 per cent starting July 1

WATCH: Alberta Party leadership candidates in Red Deer

Three people vying to be the leader of the Alberta Party were… Continue reading

In photos: Get ready for Western Canadian Championships

Haywood NorAm Western Canadian Championships and Peavey Mart Alberta Cup 5/6 start… Continue reading

WATCH: Red Deer city council debates cost-savings versus quality of life

Majority of councillors decide certain services are worth preserving

Got milk? Highway reopened near Millet

A southbound truck hauling milk and cartons collided with a bridge

Stettler’s newest residents overcame fear, bloodshed to come here

Daniel Kwizera, Diane Mukasine and kids now permanent residents

Giddy up: Red Deer to host Canadian Finals Rodeo in 2018

The CFR is expected to bring $20-30 million annually to Red Deer and region

Ice dancers Virtue and Moir to carry flag at Pyeongchang Olympics

Not since Kurt Browning at the 1994 Lillehammer Games has a figure… Continue reading

Beer Canada calls on feds to axe increasing beer tax as consumption trends down

OTTAWA — A trade association for Canada’s beer industry wants the federal… Continue reading

Most Read


Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month