A tale of divergence
Toronto, Vancouver, and Montreal generate nearly 52 % of Canada’s GDP on just 17 % of its land area. Rural regions face population decline and infrastructure decay.
| Region | GDP Growth 2020-25 | Population Growth | Source |
|---|---|---|---|
| Toronto CMA | +10.5 % | +8.2 % | StatsCan 36-10-0402 |
| Rural Ontario (avg.) | +3.1 % | +1.2 % | |
| Alberta non-metro | +2.8 % | –0.5 % | |
| Atlantic rural avg. | +1.7 % | –1.4 % | PBO 2025 |
Structural causes
- Concentration of capital and innovation ecosystems in major metros.
- Broadband, healthcare, and transportation gaps in smaller communities.
- Out-migration of youth and skilled trades.
What leaders can do
- Invest in regional clusters. Build satellite operations in mid-sized centres.
- Adopt remote-first work models to spread income geographically.
- Support local supplier ecosystems. Shorter supply chains enhance resilience.
- Engage with municipalities on infrastructure co-funding and workforce programs.
Arcus Insight: Canada’s long-term competitiveness depends on economic geography. Growth must become distributed, not diluted.