The latest data from Statistics Canada on gross domestic product (GDP) for the first quarter of 2024 reveals a disturbing trend: while the Canadian economy is technically growing, the living standards of Canadians continue to fall.
The report noted: “If we factor in the new data for the beginning of 2024, we see that the current ongoing decline is worsening. Inflation-adjusted per-person GDP now sits 3.1 per cent below the level it was in mid-2019, and the decline is approaching five-years in length. In other words, Canada is approaching the milestone of experiencing the longest decline in individual living standards of the last 40 years.”
This development casts a critical spotlight on the economic policies of Prime Minister Justin Trudeau’s government.
Key Findings:
- GDP Growth: The inflation-adjusted GDP, which measures the final value of all goods and services produced, increased by 0.4% in the first quarter of 2024.
- Living Standards Decline: Inflation-adjusted GDP per person, a key indicator of individual living standards, fell by 0.2%, decreasing to $58,028.
- Population Growth: Canada’s population grew by 0.6% during the same period, outpacing economic growth.
The disconnect between overall economic growth and individual living standards can be attributed to the Trudeau government’s economic policies. The rate of economic growth has been insufficient to keep up with the rapid population increase, leading to a decline in per-person GDP.
From mid-2019 to the end of 2023, inflation-adjusted per-person GDP fell from $59,905 to $58,134, a 3.0% drop. The recent data for 2024 shows an ongoing decline, now totaling 3.1% below mid-2019 levels.
This decline is nearing five years, making it one of the longest and most significant declines in living standards over the past 40 years. It is second only to the more than five-year decline from mid-1989 to 1994, which saw a 5.3% drop.
The report adds: “Weak economic growth combined with a fast-growing population over the last several years have resulted in Canadians experiencing a marked and prolonged decrease in living standards. With new data showing no sign of improvement, Canadians and governments across the country should realize that the status quo cannot continue.”
This data underscores the urgent need for the Trudeau government to reassess and overhaul its economic policies. With Canadians experiencing one of the longest and deepest declines in living standards in decades, it is clear that the current approach is unsustainable.
Experts are calling the Trudeau government to take effective measures to ensure that economic growth translates into improved living standards for all Canadians.
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