Study
| EST. READ TIME 1 MIN.7-in-10 provinces had combined government debt burdens that exceeded the size of their entire economies in 2022, curbing economic growth
The Effect of Government Debt on Economic Growth in the Canadian Provinces
- Provincial and federal government debt has grown significantly in recent years.
- A growing body of literature links government debt to slower economic growth.
- We provide a three-phase analysis linking government debt to slower growth among Canadian provinces.
- Once debt exceeds 100% of GDP, additional debt offers no benefit in terms of short-term economic growth.
- As of 2022, all but three provinces—British Columbia, Alberta, and Saskatchewan—had combined federal and provincial debt loads in excess of the 100% debt-to-GDP threshold.
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Jason Childs
Jason Childs is a professor of economics at the University of Regina. He earned his Ph.D. and Master’s degree atMcMaster University and his undergraduate degree at Mount Allison University. He has published academic papers on a wide range of topics including international finance and currency crises, lying, and the tension between legal and illicit cannabis markets. His research has been published in the Journal of Public Economics, Canadian Public Administration, and the International Journal of Drug Policy. Prof. Childs is currently vice-president of the Canadian Behavioural and Experimental Economics Research Group and maintains membership in both the Canadian Economic Association and the Atlantic Canada Economics Association. He is routinely sought out by Canadian and international news media such as CBC Radio and Television, Global, and CTV as well a numerous newspapers and radio stations for commentary on economic issues and public finance.… Read more