Mark Carney has completed his first 100 days as Prime Minister of Canada, and recent polls indicate that he is enjoying a positive approval rating. An Abacus Data poll released this week shows that both Carney and his government are viewed favorably by the electorate. A Leger poll conducted on Friday revealed that 56 percent of respondents support Carney and would likely grant his Liberal Party a majority if elections were held today.

However, despite these favorable ratings, there is uncertainty about what specific actions Carney is being praised for. The same Abacus Data survey found that only 36 percent of Canadians believe the country is moving in the right direction. Critics point out that Carney has made little progress on key campaign promises, and various economic indicators suggest a decline in Canada’s economic health.

One significant concern is capital flight. Statistics Canada reports that in the first four months of 2025, $84 billion left the country, averaging $30 million per hour. This trend reflects a growing unease among investors, both Canadian and foreign, about the economic climate.

Tax collection has also reached alarming levels. Although Carney has reduced some tax rates, the overall tax revenue as a percentage of GDP has hit a 20-year high. Economist Richard Dias notes that federal tax collection now equals 15.2 percent of Canadian GDP, with provincial and local taxes adding another 16.4 percent. This indicates that the government is increasingly reliant on a shrinking tax base to fund its operations.

In terms of productivity, the gap between U.S. and Canadian per capita GDP has widened significantly. While U.S. productivity has increased by 18 percent since 2015, Canadian productivity has only risen by 2 percent. This stagnation in productivity is expected to impact wages and purchasing power for Canadians.

Consumer insolvencies are also on the rise, with June seeing 11,464 cases, the highest since 2010. The growing number of bankruptcies is concerning, especially given that Canadian household debt has reached a historic high of $2.5 trillion.

Employment rates are declining, with only 60.9 percent of Canadians aged 15 and older currently employed. This figure is the lowest sustained employment rate since the 1990s, excluding temporary job losses from the COVID-19 pandemic. The share of government jobs has increased to 21.7 percent of the workforce, indicating a growing reliance on public sector employment.

Canada's trade deficit is also deepening, with record lows reported in April and June. The trade deficit reached $7.6 billion and $5.9 billion, respectively, primarily due to a significant drop in exports, particularly in steel and aluminum, which have fallen by over a third compared to last year.

Housing affordability remains a pressing issue. The Carney government has scaled back ambitious housing plans, and real estate prices are expected to remain high. Housing starts in Ontario have already dropped by 25 percent compared to last year, exacerbating the ongoing housing crisis as population growth outpaces new construction.