cover image: The Effect of Government Debt on Economic Growth in the Canadian Provinces

The Effect of Government Debt on Economic Growth in the Canadian Provinces

7 Nov 2024

  • Provincial and federal government debt has grown significantly in recent years.
  • A growing body of literature links government debt to slower economic growth.
  • We provide a three-phase analysis linking government debt to slower growth among Canadian provinces.
  • Once debt exceeds 100% of GDP, additional debt offers no benefit in terms of short-term economic growth.
  • As of 2022, all but three provinces—British Columbia, Alberta, and Saskatchewan—had combined federal and provincial debt loads in excess of the 100% debt-to-GDP threshold.

Authors

Jason Childs

Pages
36
Published in
Canada

Files

Table of Contents