1355 ET - The IMF executive board says Canada's major medium-term economic challenge remains boosting the country's productivity and competitiveness. In a release, following up a staff report last month, the executive board says it's crucial Canada revitalizes business dynamism, strengthen innovation incentives, and deepen internal-market integration by implementing reforms at the subregional level. Canada's economy has proven resilient amid the tariff turbulence. Nevertheless, the executive board "noted that recent trade shocks have accentuated longstanding weaknesses in productivity and competitiveness, while the near-term outlook is subdued and risks are tilted to the downside." The IMF board did offer kudos to PM Mark Carney's efforts to reorient government spending toward investments in infrastructure and resource development, and to curb spending on public-sector administration. (paul.vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

January 21, 2026 13:56 ET (18:56 GMT)

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