MONTREAL – Removing barriers to competition in industries like telecommunications and broadcasting could help to improve Canada’s productivity, according to a new OECD report.
The latest Economic Survey of Canada, presented Monday in Montreal by OECD secretary-general Angel Gurría and Canadian Finance Minister Bill Morneau, underlines the slowdown in the country’s growth attributed to falling output in natural resource-based sectors, particularly energy. The survey projects GDP growth of 1.7% this year and 2.2% in 2017, as the economy shifts toward non-resource-based activity.
The report contains data (pictured) showing Canada’s “mobile basket” and fixed broadband prices as considerably higher than those in other OECD member countries.
Among other proposals, the survey suggests that Canada ease foreign ownership restrictions in “network sectors” like telecommunications and broadcasting, where it says that cultural objectives could be achieved by other means. This could serve to boost productivity growth and lay the foundation for future economic expansion.
“The Canadian economy is proving resilient, but continues to face headwinds from the low growth trap facing the global economy,” said Gurría, in the report’s news release. “Canada’s economic policy settings are appropriate, given the risky international environment, but there is still scope for reforms to boost competition, stimulate business dynamism and ensure better economic outcomes for all Canadians.”
