Justin Trudeau has delivered a nightmare economy for Canadians.
Last year, Canada’s population grew by more than 1.2 million people, driven almost entirely by net overseas migration:
This population surge has resulted in a severe housing shortage throughout Canada:
Housing starts have fallen way behind population increase:
As a result, Canada’s rental vacancy rate has plunged to an all-time low:
In turn, Canada’s rental inflation has skyrocketed:
The population boom has also harmed Canada’s productivity, as business investment, infrastructure, and housing have failed to keep up.
Canada has suffered significant “capital shallowing”, which has reduced labour productivity (GDP per hour worked):
Canada’s record population increase has maintained the illusion of growth, with aggregate GDP continuing to rise.
However, real per capita GDP is currently around 2017 levels:
Retail sales in Canada have also grown in aggregate but declined sharply in per capita terms, reflecting Canada’s malaise:
Essentially, the aggregate Canadian economy is growing due to rapid population growth, but everyone’s slice of the economic pie (and living standards) is shrinking fast.
Last week, the National Bank of Canada published the below chart showing that Canadian business insolvencies rose to their highest level in 19 years in January:
Clearly, Canada’s economy is driving off a cliff, papered over by the most extreme immigration program in the world.
Canada is a text book example of what not to do if the goal is to increase the living standards of the incumbent resident population.
Sadly, Australia is following Canada down the same road with similar outcomes.
