Macro, structural and labour market issues.

Abstract

The Canadian economy is in better shape now that it has been for many years. Inflation is low and stable because of the monetary authorities' commitment to inflation-control targets. Success in reining in huge budget deficits, both at the federal and provincial levels, has restored Canada's finances. At the same time, it has transformed Canada from being one of the most fiscally profligate to one of the most fiscally responsible countries in the developed world. Canadian businesses have been restructuring and investing in new technology to increase productivity and efficiency. Key challenges facing Canada include further action to cut the national debt, improve productivity and lower taxes. All things considered, Canada should become an even more attractive investment capital destination in the future.