Bank of Canada will help Canadian economy to overcome pandemic and boost recovery
In order to boost economic recovery, Bank of Canada will take even bigger responsibilities than before. In a recent speech, Senior Deputy Governor Carolyn A. Wilkins spoke about the current situation. Wilkins highlighted how at present ‘many unknowns obscure our vision’, but also how there are ways to path the way forward.
The Deputy Governor highlighted how it is extremely important now to avoid ‘scarring’. For example, that’s when people are out of the workforce for a long time because they can’t find the right occupation for their skills. Moreover, Wilkins remarked how the hardest hit sectors include recreation and hospitality. These sectors employ many young people, recent immigrants and women. Therefore, the Bank of Canada is focusing on providing direct assistance to these three groups.
Increasing productivity is the key, according to Wilkins. Productivity and competitiveness are what makes Canadian economy such a driving global force. The Deputy Governor stated: ‘We can take inspiration from innovation that followed major wars. While analogies between the COVID-19 pandemic and wars are imperfect, both events force governments and businesses to adapt at speeds they previously thought impossible’.
The Bank of Canada, again, points at various factors affecting the workforce. Technological change is pushing many out of their previous jobs. Hence, this is why lifelong learning and education remain key for the population. Wilkins believes that social goals support and reinforce economic goals: ‘We need to reject the idea that there is an inevitable trade-off between social and economic goals. Human well-being is needed for economic growth, and the reverse is often true as well’.
Ultimately, the Bank of Canada reiterates its assistance policies towards to the economy. Recovery can be achieved if private, public and institutional sectors work together.