Gatineau, February 4, 2026 — The Canadian authority said an independent study has found that easing overly restrictive regulations could boost Canada’s economy by as much as 10% over the long term, delivering significant productivity and income gains.
The peer-reviewed study, commissioned by the Competition Bureau and published in the International Productivity Monitor, concludes that regulatory barriers in key sectors are limiting economic performance. According to the authority, more pro-market regulation could help Canada close its productivity gap with leading economies and raise living standards.
The study examined regulation in four sectors — energy, transportation, retail distribution, and professional services — and found that existing rules are more restrictive than necessary. The authors concluded that reform in these areas would foster innovation, improve productivity, and support stronger long-term growth.
The estimated impact ranges from a 6.5% to 10% increase in gross domestic product, which the study describes as a conservative estimate. The authority said the analysis reflects only part of the potential gains, with further benefits possible through reducing internal trade barriers, improving labour mobility between provinces, and attracting higher levels of foreign investment.
“This study shows just how much Canada could gain from a pro-competitive regulatory reform across all levels of government. Recent progress on eliminating internal trade barriers shows that this is possible. By working together, we can build a more affordable, productive, and resilient economy,” Acting Commissioner of Competition Jeanne Pratt said.
The study also found that Canada has faced persistent productivity challenges across several areas and that its regulatory environment now ranks among the least market-friendly compared with similar economies. According to the authority, these constraints are weighing on economic performance at a time when productivity growth is critical.
The analysis draws on industry-level data from 15 OECD countries and covers 19 sectors over a 25-year period. The regulated sectors examined account for approximately 30 percent of Canada’s GDP and around 40 percent of the goods and services used elsewhere in the economy.
The authors emphasized that reform can be implemented without undermining public policy objectives such as health, safety, security and environmental protection. The authority said the findings provide strong evidence that regulatory reform can deliver substantial economic benefits while maintaining essential safeguards.
