Canada's $1 Trillion Defence Boost: Will It Bolster the Economy or Leave Value Abroad?

Canada's upcoming defence spending boost could bring significant economic benefits to the country, according to a new report from the Canadian Chamber of Commerce's Business Data Lab.

The report, titled 'Deepening Our Defence: Canada's Ambitious Task to Expand the Defence Industrial Base', examines the impact of the government's increased investment in the defence sector. Core defence spending is expected to grow from approximately $64 billion in 2025 to $160 billion by 2035 and could reach $228 billion annually if Canada meets the full NATO target of 5% of GDP.

This represents a cumulative total of more than $1 trillion over the next decade, which could have far-reaching economic benefits for Canada. However, the report warns that much of this value may be lost if government purchasing decisions do not prioritize Canadian-controlled businesses and intellectual property.