Governor Dodge Says Canadian Businesses Are Making Needed Adjustments

Powerful developments and trends in the global economy mean that Canadian businesses need to make adjustments, Bank of Canada Governor David Dodge said today. And there is clear evidence that they are doing just that, he added.

In a speech to la Chambre de commerce du Montréal métropolitain and the Fédération des chambres de commerce du Québec, Mr. Dodge said that the Bank of Canada's contribution to the adjustment process is to keep inflation on target and the economy operating at full capacity. "In doing so, we help the adjustment process because resources that are released by sectors under pressure can be more readily absorbed by sectors that are expanding."

The rise of Asian economic powers, strong world economic growth, and low global interest rates, have all had an impact on the Canadian economy. "It is clear that we must all adjust to these developments and be ready to take advantage of the opportunities presented by the strong global economy," said the Governor.

Mr. Dodge pointed out that while these adjustments can be difficult and painful, there are clear signs that they are taking place. The Bank's Business Outlook Surveys "have told an encouraging story of how businesses have found ways to innovate and adjust to changing circumstances," Governor Dodge noted.