BIS central bankers’ speeches  5  Most of the growth in the period ahead is expected to come from private domestic demand. In particular, that growth relies on continued spending by Canadian households on consumption and housing. It also reflects a continued strong rise in investment spending as Canadian firms seek to expand, replace, and modernize their capacity.
A consistent growth rate of 7 per cent will allow for a doubling of income every 10 years, whereas a growth rate of 3 per cent will take 24 years to double incomes. Currently our problem is that private sector investment is weak, which may partly reflect excess capacity in some sectors, but also a lack of general business confidence.