ANALYSIS: What Canada’s Latest GDP Growth Shows

The Toronto skyline is seen shrouded in fog as a man walks in the rain on Dec. 28, 2023. The Canadian Press/Frank Gunn

While Canada’s gross domestic product (GDP) grew slightly in the second quarter of 2024, several economists say the numbers show an over-reliance on government spending to encourage growth.

“The only way that our economy is growing right now is because we’re adding more people to the economy, and then the fact that we also have a lot of government spending, mainly on employee compensation, or hiring more employees in the public sector,” said Jake Fuss, director of fiscal studies at the Fraser Institute think tank.