Canada’s living standards ‘languishing’ behind U.S. as gap in economic performance widens: study

Advertisement 1 This advertisement has not loaded yet, but your article continues below. Breadcrumb Trail Links HomeNewsCanada Canada's living standards 'languishing' behind U.S. as gap in economic performance widens: study Up until 2014, Canada largely kept pace with, or in some cases exceeded, the U.S. across multiple economic measures, the Fraser Institute found Author of the article: By Ellie Hutchings Published Sep 01, 2026 Last updated 17 hours ago 4 minute read Join the conversation Flags from Canada and the U.S. fly atop the Peace Arch at the Peace Arch Border Crossing in Blaine, Washington. PHOTO BY DAVID RYDER/BLOOMBERG Article content Canada’s economic performance has fallen further behind that of the U.S. over the past quarter century, with the gap in GDP per person more than doubling and the Americans pulling ahead on incomes, employment, investment and productivity. Article content That’s according to a new study published by the Fraser Institute, which found that, in 1999, inflation-adjusted GDP per person in Canada was $48,076, while in the U.S. it was $58,842. By 2024, GDP per person had grown to $83,286 in the U.S. compared to just $59,529 in Canada — meaning the gap had widened from $10,766 to $23,757 over 25 years. Article content Article content Article content The study compared economic outcomes in the two countries by looking at measures including living standards, incomes, employment, investment, and productivity. In every category, Canada has fallen further behind over the first quarter of the century, it found. Article content NP Posted Get a dash of perspective along with the trending news of the day in a very readable format. Sign Up By signing up you consent to receive the above newsletter from Postmedia Network Inc. Interested in more newsletters? Browse here. Article content For example, in 2010 (the earliest year of comparable data), inflation-adjusted median employment income was $6,126 higher in the U.S. than in Canada. By 2024, that gap had increased to $8,663. Article content “When comparing the economic performance of Canada relative to the U.S. since the beginning of the 21st century, it’s abundantly clear that Canadian policymakers have failed to create an environment where we can prosper,” said Jake Fuss, director of fiscal studies at the Fraser Institute, in a news release. Article content He added that the ability to transform raw materials and other inputs into demanded goods and services…