Bank of Canada sees economy strengthening as inoculations pick up

Feb 23 (Reuters) – Canada’s economy will see a solid rebound in coming months as COVID-19 restrictions are loosened, and an expected ramp up in vaccination is boosting confidence in sustained strong growth into 2022, Bank of Canada Governor Tiff Macklem said on Tuesday.

Macklem said that as more people were inoculated, high contact service industries – which have been particularly hurt by the pandemic – should be able to move towards resuming full operations, resulting in strong job growth.

“We expect a solid rebound in the immediate months ahead … with vaccinations expected to ramp up, we can be more confident in sustained strong growth through the second half of the year and into next year,” he told an Alberta business audience.

But Macklem said it would be “some time” before Canada saw a full economic recovery, noting the pandemic had accelerated a trend toward automation, with many low-wage jobs at high risk of being affected.

“We are not returning to the same economy we had before the pandemic. Even as it recovers, the economy is adapting to structural changes, and some workers will need to shift to jobs in faster-growing sectors,” he said.

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