Canada has slipped out of the top 20 richest countries, according to The Economist’s comprehensive ranking. The analysis considered three key measures: dollar income per person, adjusted income for local prices (purchasing-power parity or ppp), and income per hour worked.
The global wealth list reveals the complexities of economic comparisons, highlighting how factors like work hours and price adjustments significantly impact a nation’s standing. The United States, with the largest GDP at market exchange rates, ranks only seventh in income per person, dropping to 11th when accounting for workdays and limited holidays.
China, the second-largest economy in nominal terms, takes the 65th spot in GDP per person and 96th in hours worked. European countries like Belgium, Germany, and Sweden climb in the rankings due to lower prices and enviable work-life balances. Luxembourg stands out for its efficient use of wages in local prices, while Norway boasts the world’s highest average income per hour worked.
However, Canada’s fall from the top 20–which came from the 13th spot prior–has not gone unnoticed, with notable figures like “Shark Tank” star Kevin O’Leary openly criticizing the country’s management. Despite Canada’s rich natural resources, O’Leary asserts, “Canada is the richest country on earth run by idiots.”
O’Leary, who previously contemplated a leadership role in Canadian politics, remains critical of Prime Minister Justin Trudeau’s government. A recent Leger poll indicates that only 30% of Canadians express satisfaction with Trudeau’s administration, while 63% report dissatisfaction. Canada also ranks 23rd on The World Bank’s Ease of Doing Business list.
Despite discontent, Canada’s abundant natural resources play a crucial role in the country’s economic landscape. From British Columbia’s forested landscapes to Alberta’s oil-rich sands, Canada possesses diverse and extensive natural wealth. Companies operating in natural resources contribute significantly to the S&P/TSX Composite Index, the benchmark for the Canadian stock market.
However, investors might harbor discontent as the S&P/TSX Composite Index’s 32% return over the past five years pales in comparison to the S&P 500 Index’s 65% return in the United States. Nevertheless, given the strategic importance of natural resources, particularly during inflationary periods, this sector remains a opportunity for investors seeking diversification beyond traditional markets.
Information for this briefing was found via The Economist, Yahoo Finance, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.