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Cutting sugar consumption could save Canada’s economy billions, but simply taxing sweetened drinks may not be the best way to change consumer tastes, University of Alberta research suggests.
The results of a study published Wednesday in the Canadian Journal of Public Health estimate that if Canadians reduce their consumption of “free sugar” to less than 10 per cent of their total energy intake in 2019, it could have saved $2.5 billion in health care and other costs.
Cutting sugar consumption could save Canada’s economy billions, but simply taxing sweetened drinks may not be the best way to change consumer tastes, University of Alberta research suggests.
The results of a study published Wednesday in the Canadian Journal of Public Health estimate that if Canadians reduce their consumption of “free sugar” — sugar added to food and drink or naturally occurring in syrups, honey or fruit juice — to less than 10 per cent of their total energy intake in 2019, it could have saved $2.5 billion in health care and other costs.
Those savings reach $5 billion by cutting free sugar consumption to less than five per cent, the study added.
Paul J. Veugelers, professor of epidemiology and biostatistics at the university’s school of public health, said those figures include not just the direct health-care costs of chronic diseases related to excess sugar consumption — such as diabetes, various cancers and chronic kidney disease — they also include indirect, productivity costs due to illness and disability.
“We call that ‘loss of human capital,’” said Veugelers, the study’s principal investigator. “Because people get sick, cannot go to work, and they die too early.”
The study used sugar consumption data from the 2015 Canadian Community Health Survey, which members of the research team used in 2020 to learn that nearly two-thirds of Canadians ate more than the recommended amount of free sugar. The World Health Organization (WHO) suggests limiting sugar consumption to less than 10 per cent (and ideally less than five per cent) of total energy intake.
While it’s difficult to quantify the WHO’s recommendation for the average person, since everyone’s energy intake is going to be different and depends on how much a person consumes, Veugelers recommends exercising a little common sense when it comes to phasing out free sugars.
“Be a conscious consumer,” he said. “You know which products are sweet — start there.”
To reduce sugar consumption and the economic consequences of related chronic disease, the study recommends interventions such as taxes, subsidies and education to help change consumption patterns.
The province of Newfoundland and Labrador is trying something along those lines in September, when it plans to impose a tax on sugar sweetened beverages. But Veugelers said a levy on drinks alone may not be sufficient since, as the study notes, they only account for 17 per cent of free sugar consumption in Canada.
“Ideally we would put a tax on all sugar, not just sugar-sweetened beverages,” he said. “And the revenue from all that should be put towards subsidies of other, healthful food items so that, on balance, the food is not going to be more expensive for the consumer, and we achieve a shift in the choice of food.”
The COVID-19 pandemic has heightened the need to act sooner than later, Veugelers added, since reports show adverse affects on Canadian lifestyles such as increased consumption of unhealthy food and less physical activity.
Early in the pandemic, Statistics Canada surveys found an increasing number of respondents were eating junk food and sweets, spending time on the internet and playing video games.
In September, the agency reported just over 32 per cent of youths between the ages of 12 and 17 met Canadian physical activity recommendations in fall 2020 — down from nearly 51 per cent in fall 2018.
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OTTAWA – The Canadian economy was flat in August as high interest rates continued to weigh on consumers and businesses, while a preliminary estimate suggests it grew at an annualized rate of one per cent in the third quarter.
Statistics Canada’s gross domestic product report Thursday says growth in services-producing industries in August were offset by declines in goods-producing industries.
The manufacturing sector was the largest drag on the economy, followed by utilities, wholesale and trade and transportation and warehousing.
The report noted shutdowns at Canada’s two largest railways contributed to a decline in transportation and warehousing.
A preliminary estimate for September suggests real gross domestic product grew by 0.3 per cent.
Statistics Canada’s estimate for the third quarter is weaker than the Bank of Canada’s projection of 1.5 per cent annualized growth.
The latest economic figures suggest ongoing weakness in the Canadian economy, giving the central bank room to continue cutting interest rates.
But the size of that cut is still uncertain, with lots more data to come on inflation and the economy before the Bank of Canada’s next rate decision on Dec. 11.
“We don’t think this will ring any alarm bells for the (Bank of Canada) but it puts more emphasis on their fears around a weakening economy,” TD economist Marc Ercolao wrote.
The central bank has acknowledged repeatedly the economy is weak and that growth needs to pick back up.
Last week, the Bank of Canada delivered a half-percentage point interest rate cut in response to inflation returning to its two per cent target.
Governor Tiff Macklem wouldn’t say whether the central bank will follow up with another jumbo cut in December and instead said the central bank will take interest rate decisions one a time based on incoming economic data.
The central bank is expecting economic growth to rebound next year as rate cuts filter through the economy.
This report by The Canadian Press was first published Oct. 31, 2024
The Canadian Press. All rights reserved.
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