Canada's economy lagging peers with 3.48% per-capita growth in decade vs. U.S. 20.2%

Canada's economy is falling significantly behind peer nations, with real GDP per capita growing just 3.48 per cent between 2014 and 2024—less than one-sixth the U.S. growth rate of 20.2 per cent—according to analysis from the C.D. Howe Institute, a think tank that advocates free-market policies.

The institute ranked Canada slowest among nine peer countries measured by the metric. In response, C.D. Howe released a Productivity Blueprint on October 15 identifying eight policy areas for reform: tax reform and competitiveness; regulation; competition; human capital; innovation and commercialization; business growth; trade, transportation and supply chains; and fiscal policy and government productivity.

The blueprint proposes reducing personal income tax brackets from five to three, replacing most credits and deductions with a $10,000 allowance, and lowering the general corporate tax rate to 10 per cent.

Jeremy Kronick, President and CEO of C.D. Howe Institute, said reforms are needed to reverse the productivity slide, though the extent to which governments have adopted or plan to implement the blueprint's recommendations remains unclear.