Canada’s economic output on a per capita basis has slipped 7% below its long-term trend, a decline of roughly $4,200 per person. To return to the trend over the next decade, real per capita GDP would need to grow at an average annual rate of 1.7%. The decline has raised concerns as real GDP per capita has fallen to levels seen in 2017, and labor productivity has faltered. Many analysts have said that weaker results aren’t merely a function of the business cycle, but also due to weak capital investment and a decline in firm entry rates. The federal government has pushed back on some of the pessimism, stating that the influx of newcomers is weighing on average income and productivity.