Canada is facing a significant gap in standard of living performance, or real GDP per capita, compared to other advanced economies, according to a report from TD Bank.
The report, titled “Mind the Gap: Canada is Falling Behind the Standard-of-Living Curve” and published was published on July 13, highlights Canada’s struggle to keep up with its peers and identifies insufficient growth in real GDP per capita as the root cause of this disparity.
While Canadian economic growth has showcased resilience, especially during the COVID-19 pandemic-induced downturn, this has not translated into a proportional rise in the standard of living, said the author, economist Marc Ercolao. When adjusted for the rising population, Canada’s real GDP per capita has been deteriorating for many years. Since the 2014–15 oil shock, Canadian real GDP per capita has grown at an annual rate of 0.4 percent, in stark contrast to the 1.4 percent average growth in other advanced economies….