Canada has climbed to sixth place out of 16 national economies assessed, from 11th place in 2008, according to a Conference Board of Canada report released this morning.
However, the agency was quick to point out that Canada’s gains don’t indicate the country’s improvement – but its rivals’ slump. The board points out that Canada has maintained a “B” grade in the ranking.
“With the exception of inflation and employment growth, Canada ranks far below the best countries on all other economy indicators,” said Glen Hodgson, senior vice-president and chief economist with the Conference Board.
“Canada has been a chronic laggard on several important economic indicators – notably, labour productivity growth and competition for global investment. And even in areas where Canada has improved, other countries are still doing better.”
The report found that Canada scored an “A” for inflation and a “B” for GDP growth, labour productivity growth, employment growth, and the unemployment rate. But it found that “C” grades on income per capita and outward foreign direct investment, plus a “D” grade on inward foreign direct investment, have dragged Canada’s ranking down.
The report also found that:
- Canada’s 2012 ranking gain was driven by financial uncertainty in much of the European Union;
- Norway and Australia were top performers, achieving “A” grades;
- despite an uneven economic recovery and unsettled public finances, the U.S. ranked two places ahead of Canada in fourth place, also with a “B” grade; and
- Canada’s overall economic performance has deteriorated relative to its peers since the 1970s.
