Potential GDP is estimated to grow at a rate of 2% in Canada.Actual GDP in Canada

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Actual GDP in Canada will be equal to potential GDP only if all firms in the economy are working at full capacity, meaning that there is no unemployment or underutilization of resources. In this scenario, the economy would be operating on its production possibility frontier, and any increase in actual GDP would require an increase in potential GDP through improvements in technology, labor productivity, or capital stock. Thus, in the absence of full capacity utilization, actual GDP may grow at a slower or faster rate than potential GDP, depending on the extent of the output gap.

Potential GDP Is Estimated to Grow at a Rate of 2