Convergence Across Provincial Economies in Canada: Trends, Drivers, and Implications

Canada has long been characterized by significant regional disparities. Such inequalities can create and exacerbate regional tensions and lead to demands for further redistribution of wealth. The objective of this study is to report on the current state of provincial differences in twenty-five economic variables related to income, productivity, the labour market, well-being and fiscal capacity, and to analyze trends toward or away from convergence for these economic variables. This report also examines the factors influencing these trends and discusses the implications for the federation.