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, download the Canadian Outlook Summary.
Canadian Outlook Economic Forecast: Business Investment—August 2020
Canadian Outlook Economic Forecast: Business Investment—August 2020
Business and Household Indicators
Canadian Economic Analysis
$225.00
- In the mid-2000s, Canadian business investment boomed thanks to high prices for natural resources. But since 2014, investment has fallen flat. Capital expenditures in the resource sector fell by more than $40 billion, while investment in the other sectors has not picked up the slack.
- Business confidence remains low and domestic and global demand are weak as a result of the pandemic. After falling 0.4 per cent in 2019, we project non-residential business investment will fall by 11.9 per cent in 2020.
- The global pandemic will shift many capital expenditures well into 2021, leading to a solid rebound as the economy and commodity prices recover. We expect non-residential investment to rise by 9.1 per cent next year.
- Canada’s competitiveness compared with the U.S. remains a sore spot. Although there have been some targeted measures from the federal government aimed at boosting investment, for many firms the U.S. remains a more attractive destination in which to invest.
- The Canadian economy’s transition toward more service-oriented output and away from natural resources does not bode well for long-term investment, as service industries generally require lower levels of investment per dollar of output.
Customers Who Downloaded This Also Liked
Require an accessible version of this research?
Upon request, The Conference Board of Canada offers accessible versions of research. Please contact us to request your accessible version.
Learn more about our accessibility policies.
