WINNIPEG, Manitoba Oct 29 Commodity prices may
not rise as much as they have in recent years and should
therefore not be relied upon for future income growth, Bank of
Canada Deputy Governor Agathe Cote said on Tuesday.
"Going forward, productivity may become more crucial to our
financial well-being, since real commodity prices, while
expected to remain elevated, may not rise as much as they did in
the past decade," Cote said in the prepared text of a speech on
"The Promise of Potential."
"An unrelenting demographic shift is under way. Strength in
the growth rate of trend labour input can no longer be counted
on to support potential output growth in the face of poor trend
labour productivity. And, while Canada benefits from abundant
natural resources, one cannot necessarily count on commodity
prices to provide the same boost to income growth in the future
as they have in the recent past."