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Stephen Poloz, the governor of the Bank of Canada, told a Toronto-based think-tank that services, and not manufacturing or resources, will drive Canada’s near term economic growth.

Poloz spoke at a meeting of the C.D. Howe Institute in Toronto on Monday night. He said manufacturing and natural resources remain important parts of the Canadian economy, but it’s been 60 years since the number of Canadians employed in the goods sector surpassed those working in services.

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“We have been much more than a nation of hewers of wood and drawers of water for along time, yet the cliché lives on,” Poloz said. “I strongly believe that the continued expansion of our service sector is pointing the way toward full economic recovery and the return of sustained, natural growth.”

Poloz said the bank is confident the economy will find its way back to full output. “As these new sources of growth add up, we will gradually absorb our excess capacity sometime around mid-2018, and inflation will converge on our 2 per cent target from below.”