Medium-Term Financial Objectives

Canada Stable Economic Fundamentals - Low unemployment rate reflects solid growth in Canadian economy UNEMPLOYMENT RATE 14 12 10 8 6 4 2 0 Canada - official U.S. Canada comparable to U.S. T 90 92 94 96 98 00 02 04 06 08 10 12 15 17 19 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through July 2019. Solid economic growth and a gradual rebound in non-energy exports ⚫Household spending remains buoyant, underpinned by relatively low and stable unemployment, as well as low borrowing . costs Population and labour force growth supported by increasing immigration Moderate inflation within Bank of Canada target band y/y % change HEADLINE INFLATION CO 6 Canada Bank of Canada Target Inflation Band M U.S. -2 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through June 2019 (Canada) and June 2019 (US). (%) LABOUR FORCE PARTICIPATION RATE 70 66 64 60 861 26 Canada U.S. 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 Sources: Scotiabank Economics, Statistics Canada, BLS. Data through July 2019. Scotiabank® 42

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