Canada’s economic ranking improves

Canada’s steady economic performance in 2012 helped the country move up to a ranking of sixth out of sixteen countries assessed in The Conference Board of Canada’s latest economic report card.

This is a big jump from its 11^th-spot standing in the last report card released in 2008. Unfortunately, this is primarily a reflection of the weakness of other regions rather than a testament of Canada’s strength.

Read: Canadian economy is in transition: Tal

“This B grade should be viewed as relative because Canada fares poorly when compared with top, global economies,” says Glen Hodgson, senior vice president and chief economist. “With the exception of inflation and employment growth, Canada ranks far below the best countries on all other economic indicators.”

“Canada has been a chronic laggard on several important economic indicators. Most notably, its labour productivity growth and competition for global investment is falling behind.”

Highlights of the study:

• Canada’s improved ranking in 2012 is less about its performance and more a result of fiscal and financial uncertainty in the European Union.
• Norway and Australia are the top performers, achieving A grades.
• Despite its uneven economic recovery and unsettled public finances, the U.S. also gets a B grade and ranks fourth, two places ahead of Canada.
• Canada’s overall economic performance has deteriorated relative to its peers since the 1970s.

Along with most of its peers, Canada gets an A grade on inflation. However, it received a lower B ranking on its lackluster GDP growth, labour productivity growth, employment growth, and the unemployment rate in 2012.

Read: Canada adds 50,700 jobs in February

It scored lowest on its income per capita (D ranking), as well as on both outward and inward foreign direct investment. Canada’s income per capita dropped from sixth position among comparable countries in 2000 to eighth since 2008; our income per capita was US$36,138 in 2012, which is $12,000 below Norway, the current top performer.

Read: Canada should pursue global markets

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.