The Hidden Crisis: Canada's Standard of Living Decline Despite Economic Growth

Canada's standard of living is lagging behind other advanced economies despite strong economic growth, driven primarily by rapid population growth and immigration. The country's real GDP per capita, a key indicator of living standards, has not returned to pre-pandemic levels and is expected to shrink until 2024. Underlying this issue is sagging productivity, stemming from factors like lackluster business investment, decline in R&D spending, and a relative abundance of small companies which tend to invest less. Certain provinces like Alberta, Saskatchewan, and Newfoundland & Labrador, while initially better off due to energy sector investments, are also experiencing a decline. The OECD predicts that Canada will rank last in real GDP per capita growth among member nations until 2060. More details: https://financialpost.com/news/canada-standard-of-living-falling-behind