Canadian business needs to do a better job of boosting productivity if it's to win market share in a rapidly evolving global economy, the Bank of Canada reiterated Monday.

Senior deputy governor Paul Jenkins told a Toronto business audience that emerging economies will account for 55 per cent of the world's economic output in 10 years time, up from the current 45 per cent.

Bank of Canada governor Mark Carney has called Canada's record on productivity growth 'abysmal.' (CBC)

"The strong demand in these countries for materials, finished products and services — ranging from legal to financial to educational services — presents tremendous opportunities for Canadian business," Jenkins said.

With relatively healthy balance sheets, low taxes and low borrowing costs, Canadian business enjoys an advantage over most other countries, he said.

But harnessing those opportunities and dealing with the challenges will require more investment in modern equipment that boosts productivity.

"Our track record in this regard has not been impressive, even adjusting for the cyclical factors and uncertainties of the past two and a half years," Jenkins said, blaming a decade of lagging productivity on insufficient capital investment.

The poor productivity theme has been a familiar one with the Bank of Canada recently.

Twice in the past two months, governor Mark Carney has said Canadian companies have fallen behind on their investment in productivity-boosting technologies, while Americans have seen a surge in productivity during the recession and are emerging more competitive than ever.

Carney went so far last week as to describe Canada's track record in making productivity-enhancing investments as "abysmal." He predicted that if the trend isn't reversed, falling productivity could cost every Canadian $30,000 in income over the next decade.

Productivity is generally defined as the amount of output per unit of labour. Many economists consider increasing productivity to be the key factor in raising the overall standard of living.