Seven of Canada’s 10 provinces have a combined public debt exceeding the entire value of their economies, a situation that can stall economic growth and affect living standards, a new study suggests.
Only British Columbia, Saskatchewan, and Alberta have a gross domestic product (GDP) greater than their combined federal and provincial debt, according to a recent Fraser Institute study based on data from 2022. In the remaining provinces, the combined debt represents more than 100 percent of their GDP, decreasing their chances of economic growth.
“When government debt grows so high that it is larger than the entire value of the economy, not only does additional debt offer no benefit to economic growth, it actually hinders it and living standards stagnate,” said Jason Childs, senior fellow at the Fraser Institute and author of the report….