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The Effect of Population Aging on
Economic Growth in Canada
Ergete Ferede and Bev Dahlby
2023
2023 • Fraser Institute
The Effect of Population Aging
on Economic Growth in Canada
by Ergete Ferede and Bev Dahlby
Contents
Executive Summary / i
1. Introduction / 1
2. Background on Economic Growth and Population Aging / 3
3. How Will Canada’s Aging Population Affect Economic Growth? / 14
4. Policy Implications / 18
5. Conclusions / 20
Appendix 1. Effect of Population Aging on Productivity
and Economic Growth / 21
Appendix 2. Additional Summary Statistics / 29
References / 31
About the Authors / 36
Acknowledgments / 37
Publishing Information / 38
Supporting the Fraser Institute / 38
Purpose, Funding, and Independence / 39
About the Fraser Institute / 39
Editorial Advisory Board / 40
Ferede and Dahlby ◆ The Effect of Population Aging on Economic Growth in Canada ◆ i
Executive Summary
The proportion of seniors in Canada’s population has rapidly increased over the past
few decades. Moreover, according to Statistics Canada, the percentage of Canadians
65 years and over is projected to increase even further in the coming years. It is widely
recognized that the aging population will significantly strain provincial governments’
budgets, with health-care expendi
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