Canada holds significant untapped growth potential if it reduces internal trade barriers, according to the IMF. The Fund estimates these frictions are equivalent to roughly a 9% tariff nationwide, limiting productivity and business scale. Key highlights: Removing non-geographic barriers could lift real GDP by nearly 7% over time, with services reform delivering most of the gains. Smaller provinces stand to benefit the most proportionally. The IMF frames deeper internal integration as both a productivity and resilience priority. Overall, Canada enters 2026 with meaningful growth upside largely within its own domestic market.
