Canada Shifts Towards Productivity-Driven Growth

Canada is poised for higher economic growth, driven by gains in productivity and efficiency, as well as increased capital deployment. According to Morgan Stanley, much of Canada's previous growth came from workforce expansion. However, this phase is expected to shift towards investment-driven growth.

The potential growth rate could rise from 1.5% currently to 1.7% by the end of this decade, supported by government policy and a solid investment pipeline.

Growth could reach 2% in the 2030s if investment spreads beyond infrastructure and resources into industries that build, move, and manufacture across the economy.