As for international trade, research conducted at the World Bank and elsewhere suggests that the TPP could add a further one- or two-tenths to our potential output growth. The Canada–EU trade agreement should also boost potential, though estimates suggest by less than the TPP. In a low-growth world, these three initiatives taken together could have a significant impact on economic growth, year after year.
Now, let’s add the impact of targeted infrastructure spending. A prudent estimate is that this could add another tenth or two of a percentage point to potential output over the medium term. When you consider how the benefits of these policies would add up over years, you’ll see why every decimal point counts.