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Reasons for Canada's worst decade for economic growth since the 1930s
"Canada is in the grip of its slowest decade for economic growth since the 1930s. This is evident in the average annual increase of just 0.8% in real GDP per capita over this period. This extended period of almost no growth has widened the gap between per capita growth in the U.S. and Canada. Since 2016, U.S. real GDP per capita rose a cumulative 11.7%, versus a 2.8% gain in Canada.
This divergence of growth between the two countries occurred before, during and after the pandemic. The ability of the U.S. to sustain growth over the past decade shows that Canada's stagnation was not the inevitable result of an aging population or the exhaustion of technological innovations, but instead reflects factors under Canada's control."
(Testimony by Philip Cross, Senior Fellow - Macdonald-Laurier Institute, at Meeting No. 90 of the House of Commons Standing Committee on Finance, 18 May 2023)
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