A newly released report projects that Canada will become the eighth strongest economy in the world in the coming decade.
Cebr’s World Economic League Table 2020 marks a scorecard for economic activity for the current year and compares the dollar GDP of countries for this year as well as the next 15 years.
According to the report, Canada’s economy is expected to move from its current rank of 10th in the world to 9th in 2024 and 8th in 2029.
“Two ‘Western’ economies with particular success in attracting skilled migrants, Canada and Australia, should continue to rise in the rankings,” notes Cebr in its report summary.
“By 2034 Canada is predicted to be the 8th largest economy and Australia the 13th largest.”
The report notes that due to its success of attracting skilled migrant workers, Canada’s “population has grown by 1.1% per year between 2014 and 2019. ”
“One of the persistent themes of this report is that countries that are successful in attracting skilled migrants tend to grow faster,” states Cebr.
Despite a positive outlook in its global rankings, Cebr notes that Canada will be presented with some growing pains.
The report highlights that government debt as a share of GDP fell to 87.5% in 2019, compared with 89.9% in 2018 but despite improvement in the past several months “more action is necessary to bring levels of government debt down to a more sustainable level.”
As well, the Liberals’ current minority government will impact policy decisions and Cebr notes “this will be a significant challenge in the coming years.”
The report states the US is expected to remain the world’s largest economy throughout the 2020s and is expected to be overtaken by China in 2033.