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

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Canada’s Five-Year Business Investment Outlook—February 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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This quarter, we look at the effects of declining interest rates, potential changes in Canada/U.S. trade policy, and key industry activity on Canada’s business investment outlook.

With private non-residential investment showing signs of recovery and interest rates continuing to decline, are concerns among Canadian businesses sufficiently allayed to strengthen business investment over the next several years? What effects will the incoming Trump administration and its expected policy changes have on the trade environment between Canada and the United States? Will domestic demand firm up enough to generate growth? What industries are poised to be key contributors to investment, and how do labour shortages and the comparatively weak Canadian dollar factor in?

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