Bloomberg: Canada Productivity Rebounds in Third Quarter Despite Weak Trend
Canada’s labour productivity rose 0.9% in the third quarter. Statistics Canada said the increase “reflects the sharp recovery in business output, following a quarter of decline, while hours worked declined slightly,” even as long-term performance remains weak. Policymakers continue to warn of structural challenges, with Bank of Canada Deputy Governor Nicolas Vincent describing a “vicious circle” of low productivity and reduced investment. The recent 2025 budget promotes a “productivity super-deduction” to spur private-sector spending but upward data revisions suggest a less dire backdrop. BMO chief economist Doug Porter noted that “while no one is going to mistake Canada for a world leader in productivity growth, the backdrop is nowhere nearly as dismal on that front as first estimated.”
