Restructuring General Motors and Chrysler will directly affect potential output growth in Canada, Bank of Canada governor Mark Carney said.
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“The relative success of any restructuring efforts will directly impact – it’s an important enough sector… our potential output growth in Canada, the speed limit of our economy, if you will,” he told the House of Commons finance committee in Ottawa.
According to Reuters, the bank said in its most recent monetary policy report that restructuring in key sectors – mainly automotive and forestry – would cut the level of potential output to 1.0 percentage point below what it would otherwise have been.
