Over time, weaker investment growth would reduce capital deepening and lower poten​tial output growth. Conclusion Let me wrap up with three points. First, the decline in oil and other commodity prices since mid-2014 has dramatically altered the paths of business investment in Canada and the United States.
The two countries are now at different points in their respective business cycles (Chart 4 and Chart 5). Although the Canadian economy has made good progress adjusting to the oil price shock, material slack in our economy remains, in contrast to the US economy, which is approaching its productive capacity.