A widening competitiveness gap
Canada’s GDP per capita has fallen for five straight quarters, now $5,000 below the OECD average. Productivity lags, capital investment is weak, and red tape weighs on growth. The World Bank’s Doing Business Index ranks Canada 23rd globally, down from 14th in 2015.
| Indicator | 2015 | 2020 | 2025 | Source |
|---|---|---|---|---|
| GDP per capita (US$) | 47,300 | 46,900 | 45,200 | IMF WEO 2025 |
| Business investment (% of GDP) | 13.4 % | 11.2 % | 10.8 % | Statistics Canada |
| Productivity vs. U.S. (index) | 83 | 80 | 77 | Library of Parliament |
What’s behind the slide
- Low private R&D spending (0.9 % of GDP).
- Fragmented internal trade. Interprovincial barriers cost 2 % of GDP annually.
- Slow project approvals. Canada’s permitting times 2× U.S. average.
What leaders can do
- Push for regulatory harmonization. Align provincial licensing and standards through industry associations.
- Invest in technology-led productivity. Reinvest 3–5 % of annual revenue in automation and analytics.
- Champion export diversification. Build market share in Indo-Pacific and EU corridors.
- Advocate for evidence-based policy. Tie incentives to measurable productivity outcomes.
Arcus Insight: Competitiveness isn’t abstract — it’s cumulative. Every lag in innovation, regulation, or infrastructure adds friction that compounds over time.