Performance overview: Canada
Canada drops slightly, by two places, to 15th. Since 2007, the most positive contributions to Canada’s competitiveness score have come from improvements in technological readiness, health and primary education, and labor market efficiency. On the other hand, this year sees a continuing downward trend in innovation, business sophistication, financial market development, infrastructure, and goods market efficiency. Canada ranks among the top 10 countries in health and primary education, labor market efficiency, and financial market development. These strengths, together with monetary and fiscal policy, are helping the Canadian economy adjust to the fall in commodity prices, falling investment in the energy sector, and declining employment in energy-producing provinces. The negative income shock from the fall in terms of trade affected growth, but has been met by improvements in non-energy-exporting sectors. The shift of Canada to non-resource-led growth will benefit from the competitiveness strengths of the country but also requires work on the pillars that do not make it to the top 10.