BoC's Macklem: Will be some time before Canada sees a complete economic recovery


Bank of Canada (BoC) Governor Tiff Macklem said on Tuesday that it will be some time before Canada sees a complete recovery from the coronavirus crisis, as reported by Reuters. 

Additional takeaways

"Canada can expect a solid rebound in immediate months ahead and be more confident in sustained strong growth through the second half of 2021 and into 2022."

"We are not returning to the same economy we had before the pandemic."

"Factors point to an even more protracted recuperation period while the lost economic potential is rebuilt."

"With a complete recovery still a long way off, monetary policy will need to provide stimulus for a considerable period."

"Coming out of the second COVID-19 wave, vaccines now promise a more sustained recovery."

"Once Canada achieves widespread vaccination, high-contact service industries should be able to move towards full operations, resulting in strong job growth."

"We can expect some near-term bounceback in employment now that tightest COVID-19 curbs have been lifted in most parts of the country."

"Many Canadians will likely continue to work remotely, which would cut demand for office space, transportation and restaurants in downtown cores of major cities."

"Pandemic has most likely permanently advanced trend toward e-commerce shopping; significantly fewer in-store retail workers may be needed in future."

"Some lost jobs will not return and many low-wage jobs have a high potential of being automated."

"Governments could help meet challenges of changing job market by boosting access to childcare to allow more women to join the workforce."

Market reaction

The USD/CAD pair showed no immediate reaction to these remarks and was last seen trading flat on the day at 1.2608.

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