Canada’s productivity gap with U.S. tops $14 trillion: CCC
Canadian Chamber of Commerce graph
Canada’s lagging productivity compared to the U.S. has cost the country over $14 trillion USD in lost economic output since 1980, according to a new report from the Canadian Chamber of Commerce’s Business Data Lab.
“Canada’s long-standing productivity gap with the United States is more than a macroeconomic trend — it’s a direct challenge to our competitiveness, fiscal capacity, and future prosperity,” said Marwa Abdou, Senior Research Director at the Chamber.
The gap amounts to $385,314 USD per Canadian and has led to more than $4.5 trillion USD in lost public revenue — funding that could have gone to infrastructure, innovation, and workforce development.
Looking ahead, the trend is set to worsen. By 2030, the gap could grow by another $224,337 USD per person, translating into $9 trillion USD in lost output and $3 trillion USD in missed tax revenue.
The Chamber is calling for urgent national action, including boosting business investment, labour mobility, permitting reform, and technology adoption, especially AI.
“This isn’t just about catching up to the U.S. — it’s about choosing a path of sustained, inclusive, and innovation-led growth,” Abdou said.
