Recovery to Pick Up Steam Later This Year: Canada’s Two-Year Business Investment Outlook
The Conference Board of Canada, 14 pages,
July 21, 2021
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.
- 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.
Table of Contents
Business investment snapshot
Investment by industry