(October 28 – 12:05 ET) – Economists at Bank of Nova Scotia are refuting some of the tales of Canada’s productivity problems. They are arguing that high-tech investment by Canadian businesses is strong, and should fuel the country’s growth well into the millennium.
Scotia says that inflation-adjusted expenditures on computers and telecommunications equipment by business is running at a 19% annual growth rate right through the 1990’s.
They note that Canadian technology investment is keeping pace with the U.S. Scotia expects this investment to feed through to bottom line too. Scotiabank economists contend that since 1995, productivity has grown at a 1.4% annual rate. That’s more than twice the rate of the early 90’s.
All this investment isn’t just fuelling the U.S. high tech industry either, they argue. Much of it is being made right here at home. This has output in the high-tech sector up 10% annually through the past five years.
-IE Staff
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