Missing the Forest for the Trees – We Need to Focus on GDP, Not Trump
New data from Statistics Canada shows a continued decline in Canada’s standard of living, with real GDP per capita dropping by 1.4% in 2024 after a 1.3% decline in 2023. This economic downturn is driven by stagnant productivity, a problem Finance Minister Chrystia Freeland acknowledged in her 2022 budget speech. Despite recognizing its importance for prosperity, businesses have failed to invest in modern tools and technology, limiting worker efficiency.
The situation is even more concerning when compared to the U.S. While Canada’s real GDP per capita grew by just 1.9% under Trudeau, the U.S. saw a 14.7% increase. Economist Trevor Tombe estimated that if Canada had kept pace, its economy would be 8.5% larger today, adding $6,200 in annual income per Canadian. . In 2024, the GDP per capita gap was $22,000, with the U.S. at $66,300 and Canada at $44,400. Adjusted for inflation, the gap widens to $28,000, with the U.S. on track to produce nearly 50% more per person than Canada, an unprecedented divergence.
Freeland’s budget warned that Canada will have the lowest per capita GDP growth among OECD nations from 2020 to 2060. One major factor is the government’s aggressive immigration policy. Immigration boosts economic activity but strains public services and raises living costs without matching productivity growth and infrastructure investment.
Economists are calling for greater accountability, with Scotiabank’s Jean François Perrault advocating for a 2% annual GDP per capita growth target. Meanwhile, Trump’s tariff threats add to economic uncertainty and discourage investments.
No questions – Canadians need to focus on increasing our GDP per capita. We created this challenge not the United States. Spending endless hours focusing on individual tariffs on products each day on the news is not helpful. We need business forums to discuss investment, productivity, and boosting Canadian consumer confidence in our own economy. If we keep yelling “Squirrel or Trump” this will not happen.
