Canada’s Five-Year Business Investment Outlook—April 2025

Canada’s Five-Year Business Investment Outlook—April 2025

Business and Household Indicators Canadian Economic Analysis
10 min read

Author: David Ristovski

$225.00

This quarterly economic forecast presents the medium-term outlook for the Canadian economy. This release focuses on business investment. For an overview of all major components of the economy, go to the Canadian Outlook main page.

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Investment Challenges

Assuming that blanket tariffs will be imposed by the United States and remain in place for the entire second quarter of this year, we predict that business investment will contract by 0.8 per cent this year. Furthermore, we are calling for broad-based declines in investments in machinery and equipment, non-residential structures, and intellectual property.

Where do we expect a rebound in investment will occur, and when? What will be the short- and long-term effects of the imposition of tariffs on automative manufacturing, oil and gas production, mining, and electric power generation? What is the single most challenge for the construction sector?

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