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Dear John,
Combined federal and provincial government debt in seven provinces exceeded the value of all goods and services produced in those provinces, as recently as 2022.
A new study published by the Fraser Institute finds that once government debt surpasses 100% of GDP, further debt does not help to grow the economy.
In fact, high levels of government debt can crowd out private investment, raise interest rates, and drive inflation, which reduces rates of economic growth.
Nationwide, only British Columbia (79.2%), Saskatchewan (77.5%) and Alberta (63.8%) had a combined federal and provincial government debt level below 100% of GDP in 2022.
Policymakers should prioritize balancing their budgets and paying down debt to help spur greater economic growth for the benefit of all Canadians.
Find out how the rest of the provinces ranked here, and be sure to share this news with your friends and colleagues.
Sincerely,
Niels Veldhuis
President
The Fraser Institute
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