Canada Lags Behind US on Economic Indicators

Canada's economy has been trailing behind the US for over two decades, according to a new study. Despite the deterioration of Canada-US trade relations since President Trump launched his tariff war, the gap in economic results between the two countries has been growing since before Trump took office.

The study found that across various measures, including incomes, investment, employment, and living standards, the US outperformed Canada. One notable statistic is the widening gap in living standards, where per-person GDP grew by 41.5% in the US compared to 23.8% in Canada from 1999 to 2024.

As a result, the gap in living standards has more than doubled from $10,766 to $23,757 over the same period. Median employment income in Canada also increased by 14.7% between 2010 and 2024, compared to 18.9% in the US.

Business investment in Canada has declined significantly relative to the US, with Canadian businesses investing 54 cents per worker for every dollar invested per worker in American businesses by 2024, down from 90 cents in 2007.

The study's authors attribute this decline to a lack of economic progress and suggest that policymakers implement bold reforms, reduce taxes, cut red tape, and streamline regulations to turn Canada's economic fortunes around.