Canada’s gross domestic product (GDP) per person is growing at its slowest rate since the Great Depression, a new report from the Fraser Institute said.
GDP per person refers to the total monetary or market value of all finished goods and services produced individually.
The report, What is Behind Canada’s Growth Crisis?, demonstrates that the country’s per-person GDP grew by 0.8% (after adjusting for inflation) between 2013 and 2022.
“Canada’s in a full-blown economic growth crisis, which is homegrown and due largely to poor government policy,” said the report’s author Philip Cross, senior fellow at the Fraser Institute.
The painstakingly slow growth is a stark contrast to the United States where, the report noted, per-person GDP growth (adjusted for inflation) between 2016 and 2022 was 11.7%, while Canada’s was just 2.8% during those six years.
The report points out that business investment in Canada has declined and that growth is relatively flat in the country’s exports sector—both of which the report identified as being imperative for the Canadian economy.
Business investment during the fourth quarter of last year was $189.8 billion, however, after adjusting for inflation, it’s 17.6% below where it was during the same quarter in 2014. The report added that the value of exports had flatlined during that period.
Feelings of financial hardship are becoming rampant across the country. The 2023 Financial Stress Index, a survey of 2,000 Canadians conducted by Leger Marketing on FP Canada’s behalf, revealed money was the leading source of stress among 40% of Canadians this year, up from 38% in last year’s survey.
According to the survey, anxiety, depression and mental health challenges are also the leading consequences of financial stress for 36% of Canadians, while 48% reported difficulty sleeping, up from 43% in 2022.
Money topped personal health (23%), relationships (17%) and work (16%) for a sixth straight year.
Thirty-five percent of respondents are struggling to save enough money for retirement, while 32% are having trouble with major purchases, and 50% of Canadians aged 18-34 are worried about saving for major purchases.
“Canadians continue to struggle with their financial picture, and financial stress can have a significant impact not only on financial wellbeing, but also on mental health,” said Tashia Batstone, president and CEO of FP Canada.
