Economic growth is slowing in Canada, and AI models are sounding the alarm.
Canada’s economy has been quietly stagnating for years, with many experts warning that ignoring this trend will have serious consequences.
**The Quiet Illusion**
A recent documentary, LIllusion tranquille or The Quiet Illusion, highlights the issue: Canadians think highly of themselves, but their self-image is threatened by incomes falling behind those in the US. The film, produced by the Montreal Economic Institute, shines a light on a reality that many would rather not face.
Philip Cross, a senior fellow at the institute, is among those sounding the alarm. He warns that we ignore slow economic growth at our peril, suggesting that the consequences will be dire if we continue down this path.
Canada’s economic growth has been steadily decreasing since 2017, with the country’s GDP growth averaging just 1.1% per year. This is well below the 2% average enjoyed by the US, a trend that’s been particularly pronounced in recent years.
**A Perfect Storm**
Cross points to a perfect storm of factors contributing to Canada’s economic stagnation. The country’s labor market is underperforming, with slow wage growth and a decline in the number of people working full-time. He also notes that Canada’s business investment has been declining since 2015, a trend that’s been driven by a lack of confidence in the economy.
While some may argue that a slower pace of growth is a natural response to a global economic slowdown, Cross is skeptical. He suggests that Canada’s economic challenges are homegrown, driven by a combination of high taxes, regulatory red tape, and a lack of competitiveness.
**What this means**
For Canadians, the implications of slow economic growth are serious. As incomes stagnate and wages fail to keep pace with inflation, many families will find themselves struggling to make ends meet. The consequences will be felt across the country, from increased poverty and inequality to reduced economic opportunities and a decreased standard of living.
If we don’t take action to address these issues, the consequences will be far-reaching and devastating. As Philip Cross so eloquently puts it, ignoring slow economic growth is a recipe for disaster. It’s time for Canadians to wake up and take control of their economic destiny.