Business investment in Canada is about half what it is in the United States and is lower than in other OECD nations, says a new study.
“Investment per available worker lower in Canada than abroad tells us that businesses see less opportunity in Canada, and prefigures weaker growth in Canadian earnings and living standards than in other OECD countries,” said William Robson, one of the authors. Canadian business investment also falls short of other peer nations. Projections show that Canadian workers will only see 73 cents of new capital for every dollar in other OECD nations, excluding the U.S., in 2022, said the study.
The fact that capital spending has not rebounded during this year’s oil boom reflects both a “hostile” regulatory environment and investors who are skeptical about the future of fossil fuels, said the report.