OTTAWA - A recent report by the Organization for Economic Co-operation and Development (OECD) has highlighted the necessity for Canada to enhance its productivity and housing affordability in order to stimulate economic growth. This recommendation comes as the nation grapples with trade uncertainties and U.S. tariffs that are negatively impacting its economic outlook.

The latest OECD Economic Survey of Canada emphasizes the current resilience of the Canadian economy. However, it points out that per capita GDP growth has been lackluster, particularly when compared to the United States. The report suggests that if the economic situation significantly deteriorates, the government might need to consider increasing spending and implementing interest rate cuts, provided that inflationary pressures stemming from tariffs remain manageable.

Structural policy reforms are urged to focus on critical areas such as enhancing productivity, improving housing affordability, and enabling climate adaptation. The OECD points out that reducing internal trade barriers and enhancing the recognition of professional qualifications across provinces could play a crucial role in boosting labor mobility and, by extension, productivity.

Furthermore, the OECD has projected that Canada’s GDP growth will decline from 1.5 percent in 2024 to 1 percent in 2025, followed by a slight improvement to 1.1 percent in 2026. These figures indicate the need for proactive measures to sustain economic progress amid challenging external conditions.

The details of this report reveal a critical juncture for Canada, as it must address these structural issues to secure a more prosperous economic future. With the ongoing threat of trade disruptions and tariffs, the emphasis on policy reform becomes increasingly urgent.