Canadian economy lagging behind G7 partners, long term plan for growth urgently needed

Carolyn Wilkins in conversation with Coalition co-chairs Anne McLellan and Lisa Raitt at the Scorecard Reporting Event, O’Born Room, National Arts Centre.

Inclusive, sustainable growth necessary to ensure Canadians’ future prosperity, says Coalition for a Better Future’s first ever Scorecard Report Canada at a Turning Point, based on 21 international economic indicators

OTTAWA, March 7, 2023 – Canada is falling behind its G7 partners in many economic, social and environmental indicators that measure economic strength, and a long term plan for growth is urgently needed, says a new report released today by the Coalition for a Better Future.

Canada at a Turning Point reports on the first year of data based on the Coalition’s Scorecard of 21 internationally-recognized metrics. It shows how the country is progressing on meeting targets set by the Coalition to be achieved by 2030. The data shows Canada is moving in the right direction on some fronts, but not quickly enough.

For example, GDP per capita – perhaps the most important metric of economic success – remains below pre-pandemic levels.

“We’re generating more output, but only because we’re working more hours, not producing more from every hour worked,” the report notes. “Over the past decade, Canada’s real output per person has increased by just four per cent, which is half Australia’s growth rate and one-third that of the U.S. In short, we’re failing our workers at a time when higher inflation is eroding their purchasing power.”

Now, more than ever, governments, businesses and civil society need to collaborate on long term growth strategies to ensure that Canada is winning globally, Canadians are living better and that our economy is growing sustainably, say Coalition co-chairs Hon. Lisa Raitt and Hon. Anne McLellan. The upcoming federal budget must take this into account.

“We refuse to accept that slow growth and stagnation are inevitable,” Raitt said. “The decisions that policymakers, businesses and individuals make now will determine our country’s path for years to come. The first step toward building a more prosperous, inclusive and sustainable future for all Canadians is to embrace a much higher level of economic ambition for our country.”

“We must ask ourselves where we want Canada to be a decade or more from now in terms of standard of living, equality of opportunity, poverty reduction, environmental performance and other measures of a healthy society. We must then work together to transform that vision into reality,” McLellan said.

Canada at a Turning Point, released at the Coalition’s Scorecard Reporting Event at the National Arts Centre in Ottawa, also reveals some bright spots in which Canada is leading and making gains.

For example, the data shows progress when it comes to scaling up our tech companies. The number of private startups with billion-dollar valuations (“narwhals”) has surged to 21 from four — already surpassing the Coalition’s 2030 target of 17.

There is also scope to double the number of global leaders by scaling up in the areas of bioscience, advanced manufacturing, cleantech, agri-food and digital.

Additionally, Indigenous peoples are seeing better labour market outcomes, quickly closing gaps with non-Indigenous workers. The labour participation rate for the Indigenous population has surpassed the non-Indigenous rate for the first time ever. The share of senior management positions held by Indigenous peoples rose to 2.7 per cent, also the highest on record.

“As Canada charts a better economic future, there’s no doubt our efforts to spark stronger growth and an improved quality of life will fall short if the benefits are not shared among all Canadians. That includes closing gaps in conditions that divide rural and urban Canada,” the report says.

Coalition co-chairs Raitt and McLellan discussed these issues with students from across the country at a Campus Tour hosted by the University of Ottawa’s Telfer School of Management on March 6. Hundreds of other students from 25 university campuses joined virtually to discuss the economic issues of importance to them. Raitt and McLellan acknowledged having youth leaders around the table is integral to a prosperous future.

The report comes on the heels of new data from Nanos Research showing only one-third of Canadians believe the country is moving in the right direction when it comes to having strong economic growth. The poll, commissioned by the Coalition, also shows that while 53 per cent of Canadians believe we're moving in the right direction in terms of ensuring economic policies provide equal opportunities to Canadians, half say we're going in the wrong direction when it comes to a high standard of living.

“By choosing as a country to make economic growth a policy priority, we can strengthen the foundations of Canadian society and create the wealth necessary to fund and enhance the social programs and public services on which we all depend,” says Raitt.

“For each metric in the scorecard, an aspirational target has been set for 2030. We believe that if Canada commits to achieving these targets, we can build one of the most competitive, inclusive and sustainable economies in the world,” says McLellan.

For more information, please see our backgrounder or download our Executive Summary

Thank you to our sponsors

The lead event sponsor was Power Corporation of Canada. 

Other sponsors included Bruce Power, BIOTECanada, Canadian Wireless and Telecommunications Association, Chartered Professional Accountants Canada, Farm Credit Canada, National Maritime Group, Max Bell Foundation, Roche Canada Pharma and Sustainable Forestry Initiative.

Thank you to CPAC for being our media partner and to the University of Ottawa’s Telfer School of Management who produced our first year of analysis.

Thank you also to founding sponsor Business Council of Canada and sustaining sponsor Dairy Farmers of Canada.