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The Conversation

Barry Cross, Assistant Business Professor, Queen's University, Ontario

Canada's lagging productivity affects us all — and will take years to remedy

Canada Volkswagen United States CANADIAN PRESS Ont

Canada has a productivity problem and its economy is falling behind other developed countries as a result. What's going on? (Shutterstock)

Volkswagen executives and federal, provincial and local government officials recently celebrated their partnership in the next Canadian giga-factory in St. Thomas, Ont., to produce automotive batteries. The announcement promises up to 3,000 new jobs and to revitalize Canada’s automotive sector.

It’s good news for Canada. We need more global firms willing to invest in the country. But the $13-billion government investment doesn’t add up.

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