The Fraser Institute, a Canadian public policy think-tank, has released a new study revealing a concerning trend in the country’s living standards. According to the study, from 2019 to 2023, Canadian living standards experienced a decline that has not yet been reversed.
Grady Munro, a policy analyst at the Fraser Institute and co-author of the study titled “Changes in Per-Person GDP (Income): 1985 to 2023,” stated, “Despite claims to the contrary, living standards are declining in Canada.” The study found that inflation-adjusted per-person GDP decreased from $59,905 to $58,111, representing a 3.0% decline over the period.
This decline is the third-steepest in 40 years, with only the declines in 1989 to 1992 and 2008 to 2009 surpassing it. Additionally, the current decline, spanning 18 fiscal quarters, is already the second-longest in the last four decades. If not addressed in 2024, it could become the steepest and longest decline in 40 years.
Jason Clemens, study co-author and executive vice-president at the Fraser Institute, emphasized the need for immediate policy reforms to stimulate economic growth and productivity. He stated, “The severity of the decline in living standards should be a wake-up call for policymakers across Canada.”
The study’s findings highlight the importance of addressing the factors contributing to the decline in living standards to ensure a better quality of life for Canadians and future generations.