Businesses Ready to Invest Again: Canada’s Two-Year Business Investment Outlook—April 2021
The Conference Board of Canada, 14 pages,
April 15, 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 plummeting in 2020, non-residential investment spending is poised for a rebound this year, particularly in the second half.
- Business confidence hit record lows in the second quarter of last year. But confidence improved in the second half of 2020 and by winter had fully recovered, improving our outlook for investment spending this year.
- As demand recovers throughout this year, so too will capacity utilization. That will add extra incentive for firms to invest heading into 2022.
- The fiscal stimulus under the new Biden administration, combined with the quick pace of vaccine rollouts south of the border, will support investment in export-oriented sectors such as manufacturing.
- After a dramatic plunge in 2020, investment in the energy sector is poised for a sharp rebound this year, thanks largely to the LNG Canada project and recovering oil prices.
Table of Contents
Business investment snapshot
Investment by industry