Canada's Productivity Problem: A $7.6 Trillion Fix

Canada's productivity problem is multifaceted and will require significant investment to solve. According to Jocelyn Paquet, a National Bank of Canada economist, the country needs to muster the scale of investment, saving, and structural adjustment it hasn't seen in decades to tackle its housing affordability and competitiveness ambitions.

Paquet notes that policy makers can help by incentivizing domestic savings from pension funds, asset managers, and households into Canadian projects. The financial system could also be adjusted to channel more lending towards productive business investment rather than household borrowing.

The current bull market is now in its fourth year, leaving many investors wondering when it will end. Paquet warns that falling short of Canada's ambitions will mean accepting that the country will continue to fall behind.

In related news, a drought in Europe has disrupted supply chains with the worst wildfires in living memory affecting the Rhine River water level, which has fallen to 28 centimeters this week, the lowest ever recorded at this time of year. This has forced ships to limit their cargo or halt operations altogether, pushing barge transport prices to historic highs.