Alberta Premier Danielle Smith has emphasized the urgent need for collaboration between federal and provincial governments to tackle Canada's ongoing productivity crisis. Speaking at a national conference on productivity in Calgary on October 16, 2024, Smith pointed to regulatory roadblocks, excessive red tape, and high taxes as significant barriers to economic growth [c5d4edc2].
The context for this call to action is concerning: Canada’s productivity was reported to be only 71% of that of the United States in 2022, with a 0.6% decline observed over the past five years. In Alberta specifically, TD Economics has noted a troubling 0.5% annual decline in productivity within the oil and gas sector since 2019 [c5d4edc2].
Smith's remarks align with findings from a recent report by the Canadian Federation of Independent Business (CFIB), which suggests that removing interprovincial trade barriers could potentially boost Canada’s GDP per capita by up to 4% and add as much as $200 billion to the economy annually [debb7533] [c5ba73f6]. The CFIB report highlights the challenges faced by small businesses due to these barriers, including higher costs and limited market access, urging the federal government to act decisively [771b6836].
Alberta Finance Minister Nate Horner echoed Smith's sentiments, supporting collaborative efforts to enhance productivity across the nation. The CFIB's report also points out that internal trade costs contribute to a significant reduction in Canada’s GDP, suggesting that mutual recognition of goods, services, and credentials could be a viable solution to these challenges [c5ba73f6].
As the provinces and federal government consider these recommendations, the focus remains on creating a more open and efficient domestic market that can stimulate economic growth and improve the overall productivity of the Canadian economy [c5d4edc2].