Bank of Canada’s Poloz Says Economic Growth Disappointed

Bank of Canada Governor Stephen Poloz said his country’s economic growth has disappointed, even as it shows gradual signs of regaining momentum.

“It’s fair to say that growth has disappointed us to this stage,” Poloz told reporters today in Washington, where he is attending a meeting of Group of 20 officials. “We are behind where we thought we would be let’s say a year ago, or even for that matter 6 months ago.”

Senior Deputy Governor Tiff Macklem said earlier this month the nation’s economy will expand more slowly than the central bank had been forecasting as stronger exports and business investment remain “elusive.” Macklem, in an Oct. 1 speech, said that gross domestic product will need to expand faster than 2.5 percent to reduce the slack in the economy, a pace that isn’t likely to be met in the second half of 2013.

“What we need is growth that is significantly above 2 percent to begin reducing the excess capacity that we have in the economy,” Poloz said, adding there are some positive indicators, such an increase in the number of companies being created.

“These are positives, just not big enough positives for us to be fully confident that we are all the way there,” Poloz said. “The gradual process of healing continues.”

Asked about differences between the Macklem speech and a speech Poloz gave Sept. 18, Poloz said that his speech looked at the “long-term.”

“We were actually both saying the same thing,” Poloz said. “The story I was talking in Vancouver was a long-term story about when we get home and what are the ingredients we were looking for to get us home.”

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