We're Getting Poorer: GDP per Capita in Canada and the OECD, 2002-2060
— Published on July 23, 2024
- This research bulletin examines historical and projected trends in the growth of Canada's GDP per capita, and compares these trends to those in peer countries in the OECD.
- Canadians have been getting poorer relative to residents of other countries in the OECD. From 2002 to 2014, Canadian income growth as measured by GDP per capita roughly kept pace with the rest of the OECD. From 2014 to 2022, however, Canada's position declined sharply, ranking third-lowest among 30 countries for average growth over the period.
- Between 2012 and 2022, Canada lost ground compared to key allies and trading partners such as the United States, United Kingdom, New Zealand, and Australia, with Canadian GDP per capita declining from 80.4% of the US level in 2012 to 72.3% in 2022.
- Looking forward to 2060, Canada's projected average annual growth rate for GDP per capita (0.78%) is the lowest among 30 OECD countries.
- Canada's GDP per capita (after adjusting by inflation), which exceeded the OECD average by US$3,141 in 2002 and was roughly equivalent to the OECD average in 2022, is projected to fall below the OECD average by US$8,617 in 2060.
- The root cause of Canada's declining long-term growth in GDP per capita—recent and projected—is very low or negative growth in labour productivity reflecting weak investment in physical and human capital per worker.
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