Canada’s Economic Policy Uncertainty Index has skyrocketed 400 percent since September, hitting an all-time high in February 2025. This unprecedented level of uncertainty coincides with plummeting business confidence, with 59 percent of small businesses expecting somewhat or much weaker performance by this time next year. Given Canada’s poor track record on business investment, this sharp collapse in business confidence underscores the urgent need to prioritize policies that will encourage business optimism, investment, and growth. Check out related C.D. Howe Institute research for more.
