I will start with a few comments on how the recovery is likely to unfold and the forces that will be driving it, and what this outlook means in terms of the output gap. Then I'd like to look at Canada's growth trajectory beyond the recovery by focusing on two key variables that affect both potential and actual output – labour input and productivity.
Given the significant changes foreseen in the labour market and their implications for output, it's clear that Canada, like many other nations, needs to improve its productivity if we are to reap the benefits of sustained growth. I'll also touch on the important role of monetary policy and financial system policy in setting the stage for sustainable growth.