Fraser Institute report cites several factors that should be addressed
An analysis of advanced economies has found that Canada is among the worst in terms of GDP growth per person.
The Fraser Institute’s Alex Whalen, director of the Atlantic Canada Prosperity Initiative and co-author of We’re Getting Poorer: GDP per Capita in Canada and the OECD, 2002–2060, says that Canada had the third-lowest growth in per person GDP among 30 advanced economies between 2014 and 2022.
“In terms of GDP per person, a broad measure of living standards, Canada’s performance has weakened substantially in recent years,” he said.
The report shows that Canada’s GDP growth per person was roughly in line with OECD averages between 2002 and 2014 but then stagnated. When comparing a 20-year period, the fall in GDP growth per person is stark – from US$3,141 above the average in 2002 to $231 below by 2022.
Canada weakened its growth compared to peers including the United States, New Zealand, and Australia between 2014 and 2022. Canadian GDP per person in 2014 was $44,710 (80.4% of the US
total of $55,605) but by 2022, Canada was only at $46,035 versus $63,685 in the US. Figures are inflation adjusted.
“Canada has been experiencing a collapse in investment, low productivity growth, and a large and growing government sector, all of which contribute to reduced growth in living standards compared to our peer countries in the OECD,” said Lawrence Schembri, a senior fellow with the Fraser Institute and co-author.
The Fraser Institute has previously warned that Canada’s per-person GDP could be reduced by around $11,200 over the next 20 years due to an increased population of seniors.
