First up, some background and then the headliner.
From Unusual Whales, May 22:
Canada's standard of living on track for worst decline in 40 years
When a country experiences a population surge like Canada has, economists argue that measuring GDP per person provides a better picture of its standard of living. According to a new study by the Fraser Institute, this standard is headed for its biggest decline in 40 years.
The study by Grady Munro, Jason Clemens, and Milagros Palacios examines the three worst periods of decline and recovery in real GDP per person in Canada since 1985. These periods include 1989 to 1994, which featured a recession, 2008 to 2011, the aftermath of the global financial crisis, and the current period starting in 2019.
This latest period is unique because, despite a brief recovery in mid-2022, GDP per person began to decline again and, by the end of 2023, was significantly lower than in 2019.
“This lack of meaningful recovery suggests that since mid-2019, Canada has experienced one of the longest and deepest declines in real GDP per person since 1985,” the study’s authors stated.
From April 2019 to the end of 2023, inflation-adjusted per-person GDP fell by 3 percent, from $59,905 to $58,111. This decline is only surpassed by the drops of 5.3 percent from 1989 to 1992 and 5.2 percent during the financial crisis, according to the study.
The current decline has lasted 18 quarters, making it the second-longest in the past 40 years. Only the decline from 1989 to 1994, which lasted 21 quarters, was longer.
Crucially, signs indicate the decline is not over. GDP per person in the fourth quarter of 2023 was down 0.8 percent from the previous quarter, suggesting a continued downward trend, the study noted....
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And from MacroBusiness (Australia), May 17:
I have noted repeatedly how Canada represents an omen of what could happen to the Australian economy if we continue running an extreme immigration policy.
Canada officially recorded its largest-ever increase in population in 2023, with 1.27 million residents added, 98% of whom came from net overseas migration:
Like Australia, Canada’s extreme immigration has kept the economy from experiencing a technical recession, while per capita growth is sliding backwards:
And like Australia, Canada is experiencing its worst ever rental crisis, as population growth swamps housing supply:
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