Fork in the Road: why Canadian economic growth is slowing

岔路口:加拿大经济增长放缓的原因

Editor's Picks from The Economist

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2024-10-07

7 分钟
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A handpicked article read aloud from the latest issue of The Economist. Today we consider why Canada's economic growth is faltering. A flagging service sector and sluggish petroleum production are likely to blame.  Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+ 
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  • Hi, this is Tom Lee Devlin, co-host of Money Talks,

  • our weekly podcast on markets, the economy and business.

  • Welcome to Editor's Picks.

  • Here's an article handpicked from the latest edition of The Economist, read aloud.

  • The economies of Canada and America are joined at the hip.

  • Some $2 billion of trade and 400,000 people cross their 9,000 km of shared border every day.

  • Canadians on the West Coast do more day trips to nearby Seattle than to distant Toronto.

  • No wonder the two economies have largely moved in lockstep in recent decades.

  • Between 2009 and 2019, America's GDP grew by 27%.

  • Canada's expanded by 25%.

  • Yet since the pandemic, North America's two richest countries have diverged.

  • By the end of 2024, America's economy is expected to be 11% bigger than five years before.

  • Canada's will have grown by just 6%.

  • The difference is starker once population growth is accounted for.

  • The IMF forecasts that Canada's national income per head,

  • equivalent to around 80% of America's in the decade before the pandemic,

  • will be just 70% of its neighbors in 2025, the lowest for decades.

  • Were Canada's ten provinces and three territories an American state,

  • they would have gone from being slightly richer than Montana,

  • America's ninth poorest state, to being a bit worse off than Alabama, the fourth poorest.