Since 2022, real general government gross fixed capital formation has been rising steadily, and with the new measures announced in the federal government’s 2025 budget, it will likely continue increasing. Real business investment, however, has been moving in the opposite direction. While more government investment in areas such as defence and infrastructure can support growth and productivity, stronger private-sector investment is still needed to address Canada’s persistent economic and productivity challenges. Read this C.D. Howe Institute report to learn how Canada can solve its private investment crisis.
Source: Statistics Canada.
