Kevin Carmichael: The Sleeper Issue That Will Determine the Future of Canada’s Economic Success
The article discusses the economic recovery from the COVID-19 pandemic and how it will be influenced by the actions of businesses. The author argues that while a full recovery is possible, it will depend on whether companies invest in digital technology and sustainable practices.
Some key points made in the article include:
- A report by Bank of Montreal forecasts growth of 5% in 2021 and 4.5% in 2022.
- The speed of economic recovery will depend on how many businesses survive until containment measures ease.
- Executives who wait to invest might survive the pandemic only to see their legacies erased by more adventurous rivals.
- Bank of Canada Governor Tiff Macklem urged executives and investors to adjust their "hurdle rates" to reflect current conditions, not those that existed two decades ago.
The article concludes that if businesses adapt to the new economic reality, COVID-19 could be a positive turning point for the economy. However, if they fail to invest in digital technology and sustainable practices, Canada will continue to muddle along while other economies surge ahead.
