Bank of Canada’s Macklem backs infrastructure spending in Bloomberg interview

Investing.com -- Bank of Canada Governor Tiff Macklem has expressed support for the government’s infrastructure spending plans, stating that policymakers have historically underinvested in measures to boost productivity and real incomes.

In an interview with Bloomberg News, Macklem said, "We’ve over-relied on priming demand and not spent enough time on the tougher decisions of structural reform and making the investments that we need to actually grow the economy over the long term."

Worker productivity stagnated during Justin Trudeau’s decade as prime minister, during which his administration focused on wealth redistribution policies. Since taking office in March, Prime Minister Mark Carney has implemented tax cuts and announced plans to expedite major infrastructure projects including port expansions, liquefied natural gas terminals, and mines.

Macklem emphasized that trade agreements and large-scale infrastructure projects like pipelines and ports are crucial for enabling businesses to access new markets and encouraging risk-taking.

The central bank governor described these initiatives as "important roles for government," while adding that "ultimately it’s going to be businesses that are going to walk through that door or not. But you’ve got to create the opportunity."

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