The economy looms large as MPs return to Parliament

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Dear Friends,

You don’t have to watch the news every day to sense the widespread anxiety about Canada’s economic prospects. Will higher inflation persist? Are we heading toward a recession? Does Canada have what it takes to thrive in an increasingly competitive global economy?

As MPs return to Ottawa, the Business Council of Canada is emphasizing the need for an economic plan that responds to the serious challenges we face and positions our country for success.  

In the BCC’s pre-budget letter to The Honourable Chrystia Freeland, Minister of Finance, we’re calling for action on four priorities:

• Fiscal sustainability: Higher interest rates are adding to the burden of government debt. To reduce the risk of future shocks, it’s time for a comprehensive review of federal spending. It’s also time for the government to embrace a meaningful fiscal anchor. (More on that below.)
• Energy transition: The government must act with greater speed and urgency to create the conditions for private sector investment in the energy technologies of the future.
• Skills shortages: Governments and business must work together to address labour shortages through increased economic immigration – and by ensuring that skilled newcomers are allowed to work in the fields for which they were trained.
• Economic security: Threats to our economic security are threats to our national security. Canada’s intelligence services should be empowered to share threat intelligence with the private sector.   

Canadians have demonstrated time and again that they can overcome any challenge. We just need a roadmap for success, and the determination to make it happen.

Goldy Hyder
President and CEO
Business Council of Canada

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In December we asked you to name Canada’s greatest economic advantage. Many of you pointed to the country’s highly educated population. Others highlighted our abundance of natural resources. You can see the full results of our survey below.

Thanks to everyone who responded. We appreciate your input and comments.

Last week the BCC and Bennett Jones released a joint paper that compares the effectiveness of two different fiscal anchors – one based on the size of the federal debt as a share of GDP, and another that tracks the ratio between the government’s debt-servicing costs and government revenues. Co-authored by former Bank of Canada Governor David Dodge and Bennett Jones Senior Advisor Richard Dion, the paper was prepared in collaboration with Robert Asselin, our Senior Vice President, Policy.

The analysis highlights several risks to the government’s current fiscal plan.

Canada’s ability to attract talent from every corner of the globe is one of our country’s greatest competitive advantages. But are we doing enough to ensure newcomers can contribute to their full potential?

Join Canadian Club Toronto on February 14th for a timely discussion with three of our CEO members on how their businesses support newcomers and what the private sector, communities and governments can do together to secure Canada’s immigration advantage.