Ottawa — The Canadian Press Published on Tuesday, Nov. 10, 2009 11:17AM EST Last updated on Tuesday, Nov. 10, 2009 11:22AM EST
Canada's potential for growth has been downgraded by Toronto-Dominion Bank.
The bank says Canada's potential for economic growth without spiking inflation will be a mere 1.6 per cent over the next three years, about half its historical average.
Even when the economy fully recovers from the recession that began gripping Canada last year, TD expects annual growth will average 2.1 per cent into 2019.
The bank says restructuring challenges facing corporations will act as a speed bump to Canada's growth in the near term.
In the longer term, TD expects an aging population will slow labour force growth and Canada will need significant productivity gains to keep the economy on track.
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