TORONTO, July 24 /CNW/ - Canada is a laggard compared to other Western
countries when it comes to business investment per worker, a bellwether
measure of future prosperity for Canadians, according to a study released
today by the C.D. Howe Institute. This underperformance is troubling since
providing workers with state-of-the-art tools and equipment helps preserve
their competitive edge, raises incomes and reduces environmental stress, says
the report, "New Tools for a Richer, Greener Future: Why Canadian Workers Need
More Robust Business Investment."
Authors Robin Banerjee, Policy Analyst, and William B.P. Robson,
President and CEO at the Institute, compare Canada's performance with other
members of the G7 and the OECD as well as with the United States. Over the
past decade, they write, business-sector capital formation in Canada has been
consistently below the average for the G7, and is forecast to underperform the
average for other OECD countries over 2008 and 2009. Even in the face of
economic weakness and credit market turmoil in the United States, Canada is
not closing the gap with its southern neighbour, they add.
Their findings: While the average Canadian worker can expect about
$11,100 in new capital investment in 2008, rising to $11,400 in 2009, the
average OECD worker will likely get about $11,600, rising to $11,800 in 2009.
The average worker in the larger developed countries of the G7 will see
$11,800 of capital investment in 2008, rising to $11,900 in 2009. In the
United States, our closest neighbour and trading partner, the average worker
should enjoy about $12,500 of investment in both 2008 and 2009.
They argue that Canada's failure to improve its standing against other
developed countries, despite a healthy economy and robust saving, underscores
the need for tax and regulatory policies that would spur private investment.
The e-brief is available at http://www.cdhowe.org/pdf/ebrief_60.pdf
For further information:
For further information: Robin Banerjee, Policy Analyst, C.D. Howe
Institute, (416) 865-1904, Email: email@example.com