The shortfall is most pronounced in the asset classes most critical to productivity: ICT investment as a share of GDP was roughly 30% lower in Canada than in the US from 2015 to 2021, while intellectual property investment ran nearly 49% lower. The gap had been significant before 2015, but it widened materially after that year. This is not a new problem, but the data make clear it has not been resolved.
Carney pitches in NYC
The findings arrive against the backdrop of an aggressive investment pitch from Ottawa.
Mark Carney wrapped up a visit to New York City on Wednesday, where he addressed the Economic Club of New York and held meetings with top executives, fund managers, and entrepreneurs. The government’s goal is to catalyse more than $1 trillion in total investment over five years — in energy, transportation, data, and defence — supported by roughly $280 billion in federal capital commitments designed to draw in public, private, and institutional partners.
“Canada has what the world wants,” Carney said. “We’re an energy superpower with access to 1.5 billion consumers around the world through our free trade agreements, and we’re projected to have the second-fastest growth in the G7 this year and next. Canada’s new government is capitalising on these advantages to drive billions in new investment into Canada. These investments will make us a stronger partner to our allies abroad, including the United States, and build a stronger, more prosperous economy for all Canadians.”
The government points to genuine competitive strengths: a AAA credit rating, the lowest net debt-to-GDP ratio in the G7, seven of the world’s 50 safest banks, and as of May, a ranking as the most attractive market for infrastructure investment globally, according to the Global Infrastructure Investor Association.
Leave a comment