But the Fraser Institute study found that from 2009-2019, Australians’ standard of living surpassed Canadians by more than $1,718 on average. All figures use inflation-adjusted US dollars for comparison.
“Australia is an important comparator country to Canada, given its economic, historical, cultural and social similarities,” said Stephen Kirchner, director of the International Economy Program at the University of Sydney and author of Understanding the Prosperity Gap between Australia and Canada.
The flip of Canadian-to-Australian profits has been attributed to the latter’s greater success in increasing productivity and higher levels of investment (26% of GDP in Australia versus 22% in Canada).
“Small differences in investment, especially when driven by competitive pressures in open markets, can lead to large differences in economic performance, including higher living standards and incomes,” Kirchner said. “Because of the relatively low level of Canadian investment, Canadians are poorer than they otherwise would be—a fact that should worry policymakers in Ottawa and across the country.”