Canada continues to fall behind.
In 2018, the US had higher GDP growth than Canada.
In 2019, the US had higher GDP growth than Canada.
In 2020, the US and Canadian economies both contracted amid the Wuhan Virus crisis, but the US declined by less than Canada.
And now, the US is projected to outpace Canada for a fourth year in a row.
The latest projections for GDP growth in 2021 for Canada are 4.7%, which may sound good but represents only a partial recovery from the large economic decline we experienced in 2020. Meanwhile, projections for US GDP growth are 4.9%.
In 2020, Canada’s GDP declined by 5.4%, while the US declined by 3.5%.
So, Canada is going to have less growth from a smaller base, while the US will have more growth from a larger base, compared to where the two countries were before the crisis.
The fact that the US is growing faster than Canada, and has done so for four years in a row, points to the fact that structural issues, including government policy, has discouraged growth and investment in Canada.
In fact, it is likely that much of our growth is due to the fact that the US is growing, due to how intertwined our economies are, meaning we could be growing despite government policy.
Unfortunately, with the Liberals continuing to pursue policies that emphasize government control over self-determination and freedom, Canada will continue to struggle economically.
Spencer Fernando
