Poor Productivity Driving Canada's Underperformance Relative to US -- Market Talk

Dow Jones03-25 21:35

0935 ET - Canada's economic performance has not kept pace with the US since the mid-1990s, with the gap most pronounced in the last decade, a Statistics Canada study says. The data agency says Canada's poor productivity performance "is the principal reason why Canada is falling behind," the data agency says. The paper says Canada's relatively heavy reliance on small firms and weak business investment levels have contributed to its relative decline vis-a-vis the US. Immigration-fueled population growth helped offset some of Canada's underlying weakness, but that has stopped with federal authorities sharply scaling back the number of newcomers allowed to enter on temporary visas. If recent trends continue, "improvements in Canada's living standards will be slower than the US," Statistics Canada says. (Paul.Vieira@wsj.com; @paulvieira)

(END) Dow Jones Newswires

March 25, 2026 09:35 ET (13:35 GMT)

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Immigration-fueled population growth helped offset some of Canada's underlying weakness, but that has stopped with federal authorities sharply scaling back the number of newcomers allowed to enter on temporary visas. If recent trends continue, \"improvements in Canada's living standards will be slower than the US,\" Statistics Canada says. 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