Canada's standard of living falling behind other advanced economies: TD
CTV
A new economic report from TD says Canada is falling behind the standard-of-living curve compared to its peers.
A new economic report from TD says Canada is falling behind the standard-of-living curve compared to its peers.
According to the report published last week, Canada has been lagging behind the U.S. and other advanced economies in terms of standard of living performance (or real GDP per capita), despite recent years of “headline growth.”
“Economic growth does not necessarily equate to economic prosperity,” TD economist Marc Ercolao wrote
Aside from considering GDP, Ercolao explains, standard-of-living quality is an important factor in understanding Canada’s economic performance.
In the 10 years before the pandemic, Canada was pretty close to the U.S. in terms of average growth, just over two per cent per year, which hovered above the 1.4 per cent average for all G7 countries, Ercolao says.
Following the turmoil of the pandemic, Canada managed to pull off a strong economic recovery, emerging with one of the fastest growth rates compared to other advanced economies. Ercolao cites the growth of the country’s population as a large contributor to this economic growth.
According to the report, Canada’s economic output per person (real GDP per capita) has actually been decreasing for many years.
