Canada’s economy is falling behind—and we need to talk about it
Canada’s economy is falling behind—and we need to talk about it
We need to adopt a bold Made-in-Canada strategy that prioritizes policies that attract capital and foster domestic growth to ensure our economic resilience and global competitiveness, write Hon. Lisa Raitt and Hon. Anne McLellan, co-chairs of the Coalition for a Better Future, which just released its latest Scorecard Report.
Hon. Anne McLellan, co-chair of the Coalition for a Better Future.
The world is changing, globalization is in retreat, and Canada is not keeping up.
As Canadians confront the pressing challenges posed by global protectionism, rising economic nationalism, and increasing tariffs from the United States, we find ourselves at a critical juncture.
Despite a surge of patriotism and efforts to buy local, Canadians know that something isn’t right with our economy.
Wages aren’t keeping up, investment is faltering, and young people are struggling to build the lives they expected. Businesses are cautious, productivity is stagnant, and despite ambitious government spending, living standards are not improving.
These challenges are exacerbated by President Donald Trump’s tariff actions, creating even greater uncertainty about our economic future. If Canada has to weather sustained economic pressure, we may be facing a recession.
For four years, the Coalition for a Better Future has tracked Canada’s economic progress through its Scorecard Report, a comprehensive look at the numbers that matter most to our future prosperity. The newly released 2025 edition of the Scorecard delivers a sobering message: Canada is off target.
Hon. Lisa Raitt, co-chair of the Coalition for a Better Future.
The data is clear: our economy is not growing fast enough to support rising incomes, secure our social safety net, or compete globally.
We’ve now recorded two consecutive years of declining per capita national income. Over the past decade, real per capita incomes have grown by just over one per cent—one of the weakest performances since the Great Depression.
If we don’t change course soon, we will find ourselves struggling to keep pace with our peers. Now is the time for Canada to act.
We need to adopt a bold Made-in-Canada strategy that prioritizes policies that attract capital and foster domestic growth to ensure our economic resilience and global competitiveness.
Countries are prioritizing national security, industrial strategy, and economic self-sufficiency over free trade and market liberalization.
The U.S. and Europe are pouring massive subsidies into strategic industries, while China is aggressively expanding its economic influence. Canada cannot afford to be a spectator.
Right now, business investment in Canada is hovering at its lowest level as a share of the economy since the Second World War. Our spending on research and development is a fraction of what our peers invest. We rank near the bottom of the G7 in investment in intellectual property, technology, and capital equipment—the very things that drive productivity and innovation.
Meanwhile, our ability to compete globally is slipping. The number of Canadian companies ranked as top global players in their industries has fallen to just 14—well below our goal of 40.
Our economy is not growing fast enough to support rising incomes, secure our social safety net, or compete globally. It warns that we risk falling further behind than we are today, leaving us vulnerable, says a new Coalition for a Better Future report.
We have the talent. We have the resources. What’s missing is a commitment to investment-first economic policies that will drive long-term growth.
The Coalition was founded in 2021 with a simple but urgent mission: to ignite a national conversation about securing Canada’s quality of life and standard of living.
That conversation did not happen in the last federal election. With another election on the horizon, we can’t afford to miss the opportunity again.
We need every political party to present clear, actionable policies that will lift Canada out of economic stagnation.
This is an opportunity for all of us to come forward with concrete ideas and actions to build a resilient, competitive, sustainable economy.
Actions like breaking down interprovincial trade barriers are essential to fostering the growth and productivity that our economy requires. By smoothing trade across provinces, we can empower local businesses, stimulate regional economies, create jobs, and ensure Canadians have greater access to goods and services. We must not lose the momentum behind recent actions to eliminate these barriers.
Canadians deserve more than slogans and short-term fixes or vague promises. They need a plan that delivers real, sustained economic growth despite the challenges we are all facing.
Our 2025 Scorecard lays out where Canada is succeeding—and where we are falling behind. This is not just an academic exercise. It is a wake-up call for policymakers, business leaders, and every Canadian concerned about our country’s future.
It’s time to get back on track.
