Living standards for the average Canadian fell between 2020 and 2024 despite overall economic growth, marking the largest decline in GDP per person over a five-year period since the Great Depression, according to a new study by the Fraser Institute.
The report, Canada's "Ugly" Growth Experience, 2020–2024: Why GDP per Capita Declined while the Overall Economy Grew, finds that Gross Domestic Product (GDP) per person—a key measure of living standards—dropped by 2.0 per cent during the period.
“Canada's decline in GDP per person was the worst among OECD economies over this period and does not bode well for future improvements in living standards for the average Canadian,” said Lawrence Schembri, senior fellow at the Fraser Institute and co-author of the study.
The institute cites two main factors behind the drop: weak growth in business investment due to higher regulation, taxes, and deficit spending, and rapid employment growth driven by unprecedented levels of inward migration. These trends contributed to historically low labour productivity and poor per-person GDP growth.
Schembri added that improving living standards will require “sweeping and substantial policy changes out of Ottawa and the provinces to strengthen the investment environment and improve the overall economic outlook.”
The study’s findings underscore the gap between overall economic growth and gains in the well-being of Canadians, raising concerns about long-term prosperity unless policy adjustments are made.