OTTAWA–Income per capita grew significantly faster in Canada than it did in the United States between 2000 and 2006.
Statistics Canada reported that real income per capita in the United States rose 9.1 per cent, while in Canada real income per capita grew 15.5 per cent, nearly two-thirds faster.
The agency said that’s just the opposite of the situation prior to the turn of the millennium, when commodity prices were weak and the Canadian dollar was depreciating.
The study showed that a long downward trend in Canada’s fortunes prior to 1999 was reversed in short order.
In three short years, real income relative to the United States returned toward mid-1980s levels and much of this “reversal of fortunes” was due to Canada’s resource economy.
The study suggests that the Canadian economy’s growth has shown the advantages of diversification coming from its resource base.
The agency said a diversified economy has some of the same advantages as a diversified stock portfolio. Some sectors may decline slowly for long periods of time, only to have a sudden and dramatic change in fortunes. Such was the case in Canada, it said.