In a stirring call to action at the 2024 Halifax Economic Outlook Conference, Carolyn Rogers, the Senior Deputy Governor of the Bank of Canada, urged stakeholders to confront the pressing need for enhancing Canadian productivity. With a sense of urgency, Rogers invoked the metaphor of breaking the glass and sounding the alarm, emphasizing the gravity of the situation and the imperative of immediate action.
The conference, organized by the Halifax Partnership, a non-profit organization dedicated to promoting economic growth, provided a platform for Rogers to delve into the challenges and opportunities facing not only Halifax and Nova Scotia but the Canadian economy as a whole.
In her address, Rogers commended Halifax’s promising economic landscape, highlighting its diversity, entrepreneurial spirit, and attractiveness to investors. However, amidst global uncertainties stemming from geopolitical tensions, trade disputes, and climate change, she urged vigilance and proactive measures to navigate these challenges.
Rogers candidly addressed key economic challenges confronting Canada, including rising household debt, sluggish wage growth, and demographic shifts. She emphasized the imperative of collaborative efforts to address these issues and foster a more resilient and inclusive economy.
Rogers articulated the pervasive impact of these challenges on communities across the nation, including Halifax and Nova Scotia. While acknowledging the absence of panaceas, Rogers underscored the importance of strategic interventions, including investments in education, skills training, and support for small businesses, as pivotal steps towards fostering a more inclusive and sustainable economy.
Responding to inquiries regarding the government’s role in fostering innovation and supporting entrepreneurship, Rogers emphasized the symbiotic relationship between public policy and private enterprise. Advocating for targeted investments in research and development, access to capital for entrepreneurs, and a conducive regulatory environment, Rogers underscored the imperative of collaboration between government and industry stakeholders to nurture a vibrant innovation ecosystem.
Central to Rogers’ discourse was the role of technology, particularly artificial intelligence (AI), in driving productivity gains. While acknowledging the transformative potential of AI, Rogers cautioned against overestimating its short-term impact while underestimating its long-term ramifications. In a nuanced analysis, Rogers highlighted the divergent perspectives surrounding AI’s implications for the labor market, underscoring the need for proactive engagement and strategic utilization of technology to enhance productivity.
Addressing the puzzling decline in Canadian business investment over the past decade, Rogers alluded to cultural factors and risk aversion as potential impediments to entrepreneurial dynamism. Reflecting on Canada’s propensity for cautiousness vis-à-vis its American counterparts, Rogers underscored the need for a paradigm shift towards a more risk-tolerant investment climate. While conceding the complexity of the issue, Rogers reiterated the importance of fostering a culture of innovation and entrepreneurship to spur investment and economic growth.