According to World Bank data, in 2023, real GDP per capita in the U.S. stood at approximately $73,600 (PPP 2021), compared to Canada’s $55,800 – representing a gap in living standards of $17,800.
Canada’s poor productivity is much to blame. Canada ranks 18th in productivity (GDP per hour worked) in the OECD (2022). In 1970, Canada was the 6th most productive economy in the OECD.
“History shows that advances in productivity often come from the start-ups, the new companies led by entrepreneurs with groundbreaking ideas.” (Carolyn Rogers, Senior Deputy Governor, Bank of Canada).
We need to energize entrepreneurship and investment in Canada. Read the IIAC’s recommendations to the Department of Finance Canada on the federal government’s key budget priorities.