There are concerns Canada’s aging population might slow down the country’s economic growth. A new report from consulting giant, Accenture Canada, says federal, provincial and municipal governments will have to boost spending over the next 13 years to keep providing public services at today’s standards. Accenture says the shortfall works out to 93-billion dollars, or an extra four per cent of gross domestic product.
The report details that the demand will come mostly from people 65 or older, who cost provinces at least five times more to care for than people 64 or younger. Twenty percent of Canadians are expected to be 65-plus by 2025.
The report says Canada’s G-D-P is on target to grow 2.3 per cent by then, but says that’s not enough to fund health care, pensions and social supports. But the company says governments can address the shortfall if they commit to long-term cost-cutting strategies.