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Getting Older is Cruelest Blow to Global Growth. Just Ask Canada
Older workforce means slower GDP growth and interest rates around the world
Senior couple hugging on dock
Photographer: Tetra Images/Getty Images/Brand XThis article is for subscribers only.
An older population is becoming the most powerful drag on Canada's job market and growth prospects. And it's also a reason why the global economy may get stuck in an era of low interest rates and weak demand.
Bank of Canada Governor Stephen Poloz gave a blunt speech last week, saying that five decades of expansion powered by the Baby Boom generation is ending, and Canada's potential economic growth has slowed to 1.5 percent. That pace is almost a full percentage point below the average gain in gross domestic product over the last 35 years.