New Study Shows Canada’s GDP Growth Rates Can Be Misleading Without Population Adjustment
The study pointed out that both media and political analysts use GDP growth to assess Canada’s economy compared to other countries and over time. However, it now suggests that using per-person GDP, a measure of living standards, can provide a more accurate assessment of economic performance.
‘Near the Bottom’
An example from the study revealed that Canada had the second-highest overall GDP growth among G7 countries between 2000 and 2023. However, when adjusted for population growth, Canada’s per-person GDP growth rate was near the bottom of the group and below the G7 average.
After adjusting for population growth, Canada’s annual GDP growth rate between 2000 and 2023 was 1.8 percent, just below the United States’ rate of 1.9 percent. The study emphasized the importance of considering GDP growth per person for a more accurate comparison.
By comparing GDP growth per person among G7 countries, Canada’s real per-person GDP growth rate was 0.7 percent—below the G7 average of 1 percent and trailing behind the United States. The study suggests that frequent references to Canada’s overall GDP growth rates may mislead the public about the country’s economic performance.
Looking at economic growth rates under different leadership, the study found that economic growth in Canada has been slower in recent years compared to historical periods. Adjusted for population growth, the study revealed that real per-person economic growth has been stagnant under the Trudeau government.
Mr. Eisen emphasized the importance of accurately measuring economic performance and living standards to avoid misleading Canadians about the country’s economy.
