Hub Podcasts Is Budget 2025 enough to reverse Canada's economic decline?
Nov 12, 2025
Trevor Tombe, an economics professor at the University of Calgary, discusses why Budget 2025 might not be enough to close Canada’s productivity gap with the U.S. He explores the potential of a $500 billion investment and the necessity of long-term policy commitment. Kirk LaPointe, a B.C. correspondent, comments on the Cowichan Indigenous land-title ruling, emphasizing the government's poor communication and the need for honest dialogue about reconciliation's implications. The conversation reveals critical insights into Canada’s economic and social challenges.
AI Snips
Chapters
Transcript
Episode notes
Canada's Long Productivity Decline
- Canada faces stagnant productivity growth, averaging 0.3% per year over the past decade.
- Trevor Tombe warns closing the gap with the U.S. will take decades even with large investment boosts.
Big Investment Still Yields Slow Convergence
- The budget's goal to unlock $500 billion in private investment could raise real GDP about 3.5% by 2030.
- Even with that, Tombe calculates Canada wouldn't regain its pre-2015 relative position until around 2050.
Make This Budget The First Of Many
- Treat Budget 2025 as a potential first step that needs follow-through across successive governments.
- Pursue sustained, incremental reforms year after year rather than expecting one budget to fix long-term decline.