Between 2005 and 2019 the growth rate for business investment slumped from almost 45% for 2000-2005, to 25% in 2005-2010, less than 19% for 2010-2015, and to little more than 11% in 2015-2019.
The weak rates mean that Canada is underperforming its peers having outperformed them in the period from 2000-2010. In the most recent period (2015-2019) Canada’s growth in business investment of 11.6% was well below the OECD average of 19.6% and the United States’ 19.7%.
Industries that are lagging
Two key industry sectors are particularly evident in machinery and equipment, and intellectual property.
These two industries have a significant impact on Canada’s productivity and living standards.
“Given how important business investment is to increase productivity and raise living standards, the slow growth rate Canada is experiencing is alarming, particularly now as Canada emerges from the COVID recession,” Globerman said. “Improving the conditions that encourage more business investment should be a priority for policymakers across the country.”
