Canada is doing a number of things to “shoot ourselves in the foot” when it comes to its economic competitiveness, former Bank of Canada Governor David Dodge said in an interview with BNN Bloomberg on Thursday.
The country’s ability to compete globally has not only been hurt by domestic factors, but also developments outside of Canada, Dodge said.
What’s causing the most damage to Canada’s competitiveness?
“There are two issues here: One, we in Canada have been doing a number of things to shoot ourselves in the foot. Number two, the world outside is changing and creating a number of uncertainties for investment in Canada, both public and private investment,” Dodge, a senior advisor at Bennett Jones, said.
“This is an issue for us … we do have to be concerned.”
Dodge’s joins a growing chorus of critics warning that Canada is losing ground when it comes to global competitiveness. Some business leaders and experts warn that regulatory uncertainty and aggressive U.S. corporate tax cuts are deterring investments into Canada.
On Wednesday Suncor CEO Steve Williams said Canada was no longer a good place to invest and warned that regulatory confusion has led to an “exodus” of big energy players from Canada’s oil sands.
“That uncertainty and that lack of investment and growth in Canada is something that is worrying the Bank of Canada as well,” Dodge said. “They have to take that into account.”