Canadian Business Growth Is The Slowest In Years, Monthly Closures Rise

Canada’s booming population isn’t enough to save its eroding business environment. Statistics Canada (Stat Can) data shows business growth continued to slow in February, despite the rapidly escalating population. Even more business owners are deciding to shutter their doors as unemployment rises and incentives to operate continue to fade. 

Canada Is Seeing Very Slow Business Growth

Canada’s population might be surging but the number of people starting businesses certainly isn’t. Active businesses were virtually unchanged (-800) at 936k in February. Over the past year, Canada’s economy saw just a 0.1`7% (+1.6k) net increase in businesses operating. Positive numbers are better than a contraction, but barely at this rate. 

Canadian Business Growth Is Unusually Slow

The annual growth rate for active businesses in Canada.

Source: Statistics Canada; Better Dwelling.

Active businesses are advancing at an unusually slow pace. The most recent data represented the slowest annual growth since February 2021. Excluding the pandemic, one needs to go all the way back to 2017 to see such a small advance. It’s an odd disconnect to see a country’s population growing at a rate 18x larger than the number of active businesses.  

Canadian Business Owners Are Shuttering At A Faster Rate

Slow growth is compounded by another issue—the number of businesses shuttering. It’s estimated the number of closing businesses climbed 0.6% (+238) to 43.6k businesses in February. It represents a 1.2% (+520) increase compared to the same month last year, as fewer business owners operate. 

Canada is facing one of the most unusual business environments in history. Typically countries with rapid population growth accompany a booming economy. That isn’t the case here, where record population growth has been persistently accompanying eroding economic fundamentals. Its population is ripping while the country has seen soaring unemployment, rising business insolvencies, and now slow business growth. 

People rushing from around the globe to be a part of an eroding economy is odd, to say the least. 



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  • Reply
    Jack Bremer 1 day ago

    The main reason? The Canadian fertility rate is 1.33, the lowest ever. To maintain a population you need a fertility rate of 2.1, which means native Canadians are dying out. Waves of new immigrants with entirely different cultural backgrounds are resulting in a rise of vast groups that does not fit in well, leading to tensions, losses in the economy as well as a remarkable rise in crime.

  • Reply
    Parinder 20 hours ago

    Immigration needs to be increased to support housing prices.

  • Reply
    Jill Stuart 19 hours ago

    TPTB just want a bunch of rent serfs paying into their real estate, telecoms and grocery store investments. I wouldn’t be surprised if it’s a few companies who own everything in Canada. Canada is such a Ponzi scheme.

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