Canada Faces Perfect Economic Storm Amid Soaring Debt and Stagnant Growth

Canada is facing a perfect storm of economic challenges that are exacerbating each other and threatening to create a financial spiral from which it may be difficult to recover.

The country's economy has been stagnant for over a decade, while government spending continues to swell. The number of federal public service employees increased by 36 percent between 2013 and 2023, reaching 368,000, compared to the 15 percent growth in private-sector employment during the same period.

The government's inability to effectively address these issues is further compounded by its own policies. For instance, higher taxes are driving up food costs for Canadians, who already pay thousands of dollars more than necessary for basic necessities due to layers of taxation throughout the supply chain.

Federal, provincial, and municipal governments' combined spending reached 44 percent of Canada's economy in 2024, a staggering $1.4 trillion. The national debt has doubled since the Liberals took office in 2015, reaching $1.6 trillion or about 50 percent of annual GDP.