Challenges to Ease Gradually: Canada’s Two-Year Business Investment Outlook—April 2022

Document Highlights

Real non-residential business investment will grow by 4.7 per cent this year and by 2.8 per cent in 2023.

Much of the strength in investment will come from the energy sector. This is due to high oil prices and investments in clean technologies, such as carbon capture and storage.

Uncertainty around future prices for inputs is making many businesses hesitant to invest.

Staffing shortages will continue to hurt near-term investment, but the labour market will loosen as prices decelerate and immigration picks up.

Supply disruptions should continue to improve this year, although geopolitical conflicts could cloud the recovery.