Potential Output Growth Accelerates Over the Long Term: Canada’s Potential Output Outlook to 2045

This annual economic forecast for Canada examines the potential economic outlook for Canada, including gross domestic product (GDP) and labour market conditions.

Canada’s potential output is forecast to expand at an average pace of 1.5 per cent between 2022 and 2027. But what will its average pace of growth be between 2028 and 2045? In response to labour market shortages, will firms have an incentive to invest in productivity-enhancing technology and skills development of their workforce? And will steady business investment on machinery and equipment in the coming years help to keep capital stock elevated for much of the forecast period?

Read the issue briefing to get our full analysis.