Just The Facts: Canada Keeps Falling Behind

March 26, 2026

March 26, 2026
FOR IMMEDIATE RELEASE

Ottawa, ON – Mark Carney told Canadians he was a serious economist who could reverse a decade of Liberal economic mismanagement that stalled our economy. With Canada being the only shrinking economy in the G7, Carney’s promises have been proven to be another Liberal illusion. 

This was confirmed again by the latest OECD projections, which found that Canada would see GDP growth decline to just 1.2 per cent this year, lower than the 1.7 per cent growth last year. The OECD found that Canada continues to struggle with “persistent weakness in business investment growth.”

This was backed up by a new report from the CD Howe Institute, which found that “adjusted for inflation and growth in the labour force, business investment in all major types of non-residential capital is down since its 2014 peak.”

Over the last decade, per-worker non-residential business investment has fallen by nearly a quarter, with investment in non-residential structures collapsing by 32 per cent and machinery and equipment investment dropping by 29 per cent since its peak.

While investment in intellectual property is booming in the US, since 2023, Canada has experienced a 3 per cent decline. It’s not the only place we’re falling behind, as StatsCan recently reported that while from 1997 to 2015 Canada’s GDP per capita was on par with the United States, since 2015 our growth has been half that of the Americans.

Meanwhile, Canada’s Gross National Income per capita also collapsed. Between 1997 and 2015, it grew at a faster pace than in the US, but over the last decade, Canada’s relative GNI per capita has continued to fall and is now 10 per cent below levels observed three decades ago. The report found that “the relative decline in productivity growth is the principal reason why Canada is falling behind.”

Meanwhile, the OECD predicts inflation will surge even further, rising again to 2.4 per cent this year. With the highest food inflation in the G7, rising twice as fast as it was when Carney took office, Canadians will feel their wallets getting even lighter as prices continue to rise at the grocery store.

Carney’s promises to make Canada the fastest-growing economy in the G7 were just another illusion, as the reality has led to the fastest-growing grocery prices, weakened investment and a shrinking economy. Conservatives will fight to reverse the Liberals’ economic carnage to make Canada strong at home and affordable at home for unbreakable leverage abroad.