Prices are rising, but real incomes are not. The study says among the likely reasons for that, which the Bank of Canada itself has highlighted, is weak business investment and consequently low productivity.
New business investment per worker in Canada was slightly over 50 cents for every dollar invested in America per worker in 2021, the lowest it has been since the beginning of the 1990s. The report calculates that there will be $20,400 of new capital per worker this year for OECD countries, aside from the U.S., compared with $14,800 in Canada.The oil crash in 2014 didn’t help. Capital spending in the mining, quarrying, and oil and gas extraction industry reached its peak then and has been sliding ever since. From 2014 to 2021, investment in structures and machinery and equipment fell 61 per cent and 53 per cent, respectively.
In 2016, Canadian oil and gas workers were receiving almost as much investment per person as their American counterparts.Another contributor to low business investment in this country is the oversized share going to residential investment, says the report. Consumption and residential investment together have been greater than 85 per cent of GDP for an “unprecedented” seven years.Advertisement 5Financers of investment appear to favour larger companies over small or medium-sized businesses.
Uhhh duuu. With our present government it's more expensive to do anything.
acoyne “Hostile regulatory environment” driving business capital elsewhere. With a PM who’s a failed drama teacher and doesn’t pay any attention to monetary policy and a convicted eco-criminal/Green Jesus as Env’t Minister, any surprises here? Didn’t think so.
acoyne and what is ration of govt worker to private sector in CDA ?
acoyne Don't worry, high interest rates are coming
Who'd be foolish enough to bring capital to canada?