The Fraser Institute says Canadians have been getting poorer relative to residents of other countries in the Organisation for Economic Co-operation and Development (OECD). “From 2002 to 2014, Canadian income growth as measured by GDP per capita roughly kept pace with the rest of the OECD. From 2014 to 2022, however, Canada’s position declined sharply, ranking third-lowest among 30 countries for average growth over the period,” Fraser Institute researchers write in the latest research bulletin, We’re Getting Poorer: GDP per Capita in Canada and the OECD, 2002-2060.

“Between 2012 and 2022, Canada lost ground compared to key allies and trading partners such as the United States, United Kingdom, New Zealand and Australia, with Canadian GDP per capita declining from 80.4 per cent of the U.S. level in 2012 to 72.3 per cent in 2022.” 

They say the root cause of Canada’s decline – both recent and projected (Canada is expected to take the very last place in the ranking of countries over time) – is very low or negative growth in labour productivity, “reflecting weak investment in physical and human capital per worker.” 

The institute says the analysis is based on OECD data. “Canada’s position relative to the OECD average declined every year between 2014 and 2022 and, as a result, by 2022 the OECD average exceeded the Canadian average,” they write. “Canada’s economic performance, both over time and compared to the OECD is in a state of decline.”