Canada faces productivity and infrastructure challenges

The C. D. Howe Institute has released a ‘Productivity Blueprint’ outlining necessary reforms to address Canada’s lagging living standards. Between 2014 and 2024, Canada’s real GDP per capita grew by only 3.5 percent, the slowest among nine peer nations and significantly trailing the 20.2 percent growth seen in the United States.

The Institute identifies eight critical policy areas for reform: tax competitiveness, regulation, competition, human capital, innovation, business growth, trade and supply chains, and fiscal policy. Proposed tax reforms include reducing personal income tax brackets from five to three and lowering the general corporate tax rate to 10 percent, which could potentially unlock $140 billion in new business investment.

Simultaneously, the Canadian Chamber of Commerce has engaged with the Legislative Committee on Bill C-39, emphasizing the need for faster project approvals and reliable supply chains. The business community stressed that accelerating major projects and maintaining efficient transport networks are essential to meeting government goals of doubling non-U.S. exports by 2035 and becoming the fastest-growing economy in the G7.