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Canada appears to have lower GDP per capita than Alabama in recent measures.
Summary
Analysis by an academic and the IMF showed Canada’s GDP per capita briefly trailed Alabama’s in 2023–24 after adjustments; experts note population growth in Canada and recent industrial investment and low unemployment in Alabama help explain the gap.
Content
Canada’s standing versus a U.S. state drew attention after economists and the IMF ran GDP-per-capita comparisons for 2023–24 and found Canada briefly trailed Alabama. GDP per capita divides total output by population and the reported comparison included adjustments for exchange rates and some cost differences. The finding arrived amid high housing costs and inflation in Canada and followed years of substantial investment and job growth in parts of Alabama. Observers emphasized that the metric is sensitive to population change and does not capture many social outcomes.
Key points:
- The analysis cited by the article showed Canada’s provincial average GDP per capita about US$55,000 in 2022 and briefly lower than Alabama in 2023–24 after adjustments.
- Alabama has seen major private investments, a low unemployment rate (reported as 2.7 percent) and growth in auto and aerospace manufacturing that boosted its output.
- Canada’s population rose rapidly (about two million added in 2023–24), which affects GDP per capita until newcomers contribute to measured output.
- GDP per capita omits distribution and social measures; the article notes differences such as Alabama’s lower life expectancy (around 74 years) versus Canada’s (around 82 years) and a low state minimum wage in Alabama.
Summary:
The comparison highlights how a headline metric can shift when population and large investments move differently across places, prompting debate about competitiveness and measurement. Undetermined at this time.
