Canada’s prosperity problem points to a lower-wage future – by Editorial Board (Globe and Mail – November 9, 2023)

Thirty years ago, Canada could be rightly thought of as one of the more prosperous countries in the world. Canadians were not quite as rich as Americans, but we had many other advantages – and were better off than pretty much everyone else.

That’s the past. The present and future look to be a great deal less pleasant: Canada is not just losing ground relative to other countries but there is an increasing likelihood of an outright decline in living standards.

According to recent data and forecasts in a report from the C.D. Howe Institute, Canada’s relative prosperity is in steep decline, with this country’s gross domestic product per capita falling well below the average for the advanced economies that make up the Organization for Economic Co-operation and Development.

In 1993, Canada’s real GDP per capita was 106 per cent of the OECD average. The C.D. Howe Institute forecasts that in 2024 Canada will be just 89 per cent of the average of advanced economies.

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