The Blubber

Canada is one of only eight advanced countries where average real incomes are lower than before the pandemic, as inflation outpaces growth in nominal incomes, per the Business Council of British Columbia.


Canada's economy has rebounded to 103% of its pre-pandemic size, making it the fastest recovery among the last four recessions and the second strongest in the G7. Despite the emphasis on GDP growth in government statements, the focus on the economic pie's overall size rather than GDP per capita raises concerns. Over the past year, while Canada's real GDP grew by approximately 1%, the population increased by 3%, resulting in a 2% decrease in per capita terms. This growth is attributed to the government's pursuit of the fastest population increase since 1957-58, driven by domestic policy choices.

Contrary to the positive narrative presented by the government, focusing on GDP per capita reveals a different reality. In the five years leading up to 2019, Canada's real GDP per capita grew by only 3%, ranking as the fourth weakest performance among 38 advanced countries. Lagging behind countries like the United States, Euro area, OECD average, and G7 average, Canada's economic performance was subpar.

Furthermore, Canada is among the few advanced countries where real GDP per capita is lower than pre-pandemic levels. Comparing the change in real GDP per capita from 2019 to 2022, Canada experienced a 0.4% decrease, while countries like Australia, the United States, OECD average, and G7 average saw increases ranging from 2% to 7%. Canada's post-pandemic recovery in real GDP per capita ranks as the fifth weakest out of 38 OECD countries, indicating challenges in achieving meaningful improvements in living standards for Canadians.