Abu Dhabi, UAEThursday 3 December 2020

Canada is rich - and cheap

Vancouver houses.
Vancouver houses.

It’s Canada, they have money,” Donald Trump said at this week’s NATO summit.

Most of what the U.S. President says is either exaggerated or false, but occasionally he sums up in a sentence what everyone knows to be true.

After admonishing Prime Minister Justin Trudeau at the summit for Canada’s failure to meet, or strive toward, the North Atlantic Treaty Organization’s defence-spending target of 2 per cent of Gross Domestic Product (GDP), Mr. Trump pointed out an inconvenient truth. The President was saying Canada is rich and cheap.

But just how rich is Canada?

Among the Group of Seven -- a group of the richest countries in the world -- Canada enjoys the third-highest per-capita income and, since 2016, has led the G7 in economic growth. Canada also has the lowest net-debt-to-GDP ratio among those same seven countries, and the second-lowest national-government-deficit-to-GDP ratio. Which means, in essence, that Canada is the third-richest country in the G7 and the best in class with government finances.

Updated: December 10, 2019 02:16 PM

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