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.
Document Highlights
After falling sharply in 2020, real non-residential investment will expand 2.8 per cent this year, with an additional 6.3 per cent gain forecast for 2022.
Businesses are optimistic that the pandemic will soon be in the rear view—a positive signal for renewed interest in longer-term capital spending intentions. After a dramatic plunge in 2020, investment in the energy sector will begin its recovery this year, thanks largely to the LNG (liquefied natural gas) Canada project and higher oil prices.
A bright outlook for the United States economy will support investment in export-oriented sectors, such as manufacturing. Despite the generally upbeat outlook, Canada’s competitiveness compared with the U.S.—particularly in terms of corporate taxation—remains a sore spot as many firms opt to invest south of the border rather than in Canada.
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