The Fraser Institute, an independent Canadian public policy think-tank, has released a new study that challenges the traditional use of GDP growth figures to assess Canada’s economic performance. According to the study, not adjusting GDP growth for population changes can provide a misleading picture of the country’s economic progress.
Ben Eisen, senior fellow at the Fraser Institute and co-author of the study titled “GDP Growth Unadjusted for Population Change—a Misleading Measure of Canada’s Economic Progress,” emphasized the importance of using per-person GDP to measure economic performance, especially in light of Canada’s recent population surge fueled by immigration.
The study revealed that between 2020 and 2023, Canada had the second-highest rate of overall GDP growth in the G7. However, after adjusting for population growth, Canada’s per-person GDP growth rate over the same period is near the bottom of the group and well below the G7 average. Additionally, since 2015, per-person GDP growth has been almost stagnant at an average of 0.3 per cent per year.
Eisen highlighted the need for accurate measurement of economic performance and living standards to ensure that Canadians are not misled. The study’s findings suggest that using per-person GDP as an indicator of living standards can provide a more realistic assessment of Canada’s economic performance compared to other countries.
For more information or media interviews, interested parties can contact Ben Eisen, Senior Fellow at the Fraser Institute, or Mark Hasiuk, Senior Media Relations Specialist.