The Canadian government’s current strategy of prioritizing labor development to sustain growth is a laudable example that many other leading economies can learn from, according to the head of the International Monetary Fund in the official account of her recently concluded visit to Canada.
In a September 14 press release, IMF managing director Christine Lagarde expressed her support for Canadian Prime Minister Justin Trudeau’s growth strategy. During her trip, the IMF chief met with Trudeau as well as other key officials like Bill Morneau (Minister of Finance), Chrystia Freeland (Minister of International Trade), and many others.
“Now more than ever, authorities need to use all the tools available to revitalize short-term demand and to accelerate structural reforms as to raise labor productivity growth over the medium-term. I agreed that investment in infrastructure, innovation and training, and promoting higher female labor force participation should be essential elements of this growth strategy,” Lagarde stated.
“I welcomed the government’s commitment to put a price on climate damage while protecting the poor from any distributional effects. I encouraged the government to stay the course on the economy and to remain vigilant against vulnerabilities in the housing sector.”
The IMF leader also cited Canada as a bedrock of stability and development in the global economy, “including through its contribution to the IMF’s financial resources as well as its valuable support for the Fund’s assistance to low-income and developing countries and capacity development.”
In addition, Lagarde’s visit included participating in the Toronto Global forum, in which she reiterated what she called the “positive and negative consequences of integration and globalization and the policies needed to mitigate the negatives and foster stronger, more inclusive growth.”
“These were themes I also discussed with Prime Minister Trudeau and his team and we agreed such policies were a global priority.”
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