Domestic business investment in Canada remains below pre-2015 levels

A new Fraser Institute study suggests that recent increases in business investment do not mean Canada’s long-standing investment challenges have been resolved. Researchers found that investment in productivity-enhancing assets such as machinery, equipment, software, and intellectual property accounted for 11.1% of the economy in 2025, up from nearly 14% in 2014. The report also notes that rapid labour force growth combined with slower capital investment has reduced investment per worker. According to the study, this trend may continue to weigh on productivity growth and living standards. The authors argue that stronger business investment is needed to support long-term economic performance. They conclude that Canada’s business investment and productivity challenges remain unresolved.

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