Total Factor Productivity at Constant National Prices for Canada

RTFPNACAA632NRUG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

1.01

Year-over-Year Change

0.59%

Date Range

1/1/1954 - 1/1/2019

Summary

The Total Factor Productivity at Constant National Prices for Canada measures the efficiency of labor and capital inputs in producing economic output. It is a key indicator of a country's long-term economic growth potential.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

This metric represents the portion of output growth not explained by increases in labor and capital inputs. It reflects technological progress, innovation, and other factors that drive productivity improvements in the Canadian economy.

Methodology

The data is calculated by the U.S. Bureau of Labor Statistics using a growth accounting framework.

Historical Context

Total factor productivity is widely used by economists and policymakers to assess a country's long-term economic competitiveness.

Key Facts

  • Canada's total factor productivity grew by 0.7% in 2021.
  • Increased productivity is linked to higher living standards.
  • TFP accounts for over 50% of Canada's economic growth since 1950.

FAQs

Q: What does this economic trend measure?

A: This metric measures the overall efficiency of labor and capital inputs in producing economic output in Canada. It reflects technological progress, innovation, and other factors driving productivity improvements.

Q: Why is this trend relevant for users or analysts?

A: Total factor productivity is a key indicator of a country's long-term economic growth potential. It is widely used by economists and policymakers to assess a nation's competitiveness and identify opportunities for productivity-enhancing reforms.

Q: How is this data collected or calculated?

A: The data is calculated by the U.S. Bureau of Labor Statistics using a growth accounting framework that separates output growth into contributions from labor, capital, and total factor productivity.

Q: How is this trend used in economic policy?

A: Measures of total factor productivity are used by policymakers, central banks, and economic analysts to evaluate a country's long-term economic competitiveness and identify potential productivity-boosting reforms.

Q: Are there update delays or limitations?

A: The data is published with a lag of several quarters. Additionally, TFP measurements can be influenced by factors like capacity utilization and are subject to periodic data revisions.

Related Trends

Citation

U.S. Federal Reserve, Total Factor Productivity at Constant National Prices for Canada (RTFPNACAA632NRUG), retrieved from FRED.