2006 OECD Economic Surveys: Canada 2006

image of OECD Economic Surveys: Canada 2006

This 2006 edition of OECD's periodic survey of Canada's economy finds strong economic performance but cautions that to maintain this performance, productivity must be increased and social policies must be put on a sustainable path.  After reviewing recent economic developments, the Survey examines the business environment including taxation, product market competition, and capital markets.  It then takes a look at the state of innovation, Canada's innovation strategy, and how to leverage innovation to improve economic performance.  A chapter on fiscal policy and federal-provincial arrangements finds equalisation transfers need to be revamped and that the federal government should step back from trying to steer in areas of provincial responsibility.  The final chapter takes a detailed look at social welfare programmes.

English Also available in: French

Managing the Challenges ahead

The Canadian economy has performed well in recent years, and its per capita GDP gap with the United States has been narrowing, once adjustment is made for terms-of-trade gains. However, a number of challenges lie ahead. Rapid population ageing is expected to affect the size of the workforce and weigh on public finances through a surge of elderly and health care spending. Improving productivity performance will be crucial to achieving durable prosperity gains, given the nation’s already high employment rates. In addition, it will be important to ensure that the federal and provincial fiscal arrangements, as well as social policies, are on a sustainable path.

English Also available in: French

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