Fraser Institute News Release: From 2000 to 2023, Ontarians went from having 5% higher incomes to 3.2% lower than fellow Canadians
"Since the turn of the century, Ontario's economy has performed worse than other provinces. The result is that Ontarians are now experiencing lower standards of living—on average—than their fellow Canadians," said Ben Eisen, Fraser Institute senior fellow and co-author of Ontario's Economy Is Broken.
The study finds that since 2000, Ontario's real per person GDP—a broad measure of living standards—has grown at an annual average rate of just 0.55 per cent, far below the 0.91 per cent growth experienced in the rest of Canada. This stagnation has had stark consequences for the province's standard of living.
For example, in 2000, Ontarians enjoyed higher incomes than other Canadians with a GDP per person five per cent higher than the national average. By 2023, that advantage had reversed with Ontario's GDP per person 3.2 per cent lower than the rest of the country.
The study also points to a sharp decline in business investment growth as a key reason for the province's prolonged stagnation. From 1981 to 2000, business investment per worker in Ontario grew 4.5 per cent annually, compared to 1.8 per cent for the rest of the country. Since 2000, that figure collapsed to just 0.71 per cent, nearly matching the rest of Canada's low rate.
"To reverse Ontario's economic decline relative to the rest of the country, policymakers should prioritize attracting business investment as a means of raising living standards," Eisen said.
The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Halifax and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org
SOURCE The Fraser Institute
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