OECD declared Canada had the fastest-growing population of the group, but noted the lack of GDP growth was problematic<\/a>.\u00a0<\/p>\nCanadian GDP Growth Falls Behind OECD As Immigration-Driven Growth Fails To Deliver<\/p>\n
GDP: Annual growth rate for OECD members and the organization\u2019s aggregate areas.<\/p>\n
Source: OECD; Better Dwelling.\u00a0<\/p>\n
Canada logged another year of lackluster growth with its immigration-as-stimulus plans. Real GDP showed annual growth of 1.5% in 2024, below the OECD\u2019s total growth of 1.7% over the same period. This marked the second consecutive year of underperforming the advanced economies\u2019 average\u2014despite leading the group\u2019s population growth in 2023.\u00a0<\/p>\n
By itself, the shift is surprising coming out of the pandemic. In 2022, GDP growth in Canada (+4.2%) led the OECD (+3.2%) by a whole point, behind just two G7 countries\u2014Italy and the UK. However, it makes sense when viewed in the context of its population strategy.\u00a0<\/p>\n
Canada No Longer Leads, It\u2019s Falling Behind<\/p>\n
By accelerating growth so quickly, demand for necessities outpaced aggregate demand. Prices in those areas surged without adding productive output, eating into disposable income. The population also grew faster than the economy added jobs, leading to higher unemployment. More unemployed people and a higher cost of living\u2014a deadly combination, underscored by falling per capita GDP.\u00a0<\/p>\n
Overusing any stimulus tends to backfire. At a certain point, it turns into excess and produces the opposite effect. Many countries could grow their populations like Canada did, but few would take such a reckless approach. Scaling up a population takes more than just calculating 3% of the base each year.\u00a0<\/p>\n
Immigration is a long-term growth strategy that broadens talent and output. Canada excelled at it for decades\u2014until it pivoted to short-term gains. Now, instead of leading, Canada\u2019s economy is falling behind. The slowdown is often blamed on recent trade woes, but the problem started years ago.\u00a0\u00a0<\/p>\n
\n\tYou Might Also Like<\/p>\n","protected":false},"excerpt":{"rendered":"Canada\u2019s big bet on lofty immigration targets was meant to boost GDP. But it flopped\u2014OECD data shows Canada\u2019s…\n","protected":false},"author":2,"featured_media":48567,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46],"class_list":["post-48566","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/48566","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=48566"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/48566\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/48567"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=48566"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=48566"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=48566"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}