Canada's Stagnant Economy: A Decade of Weak Investment

Canada's economic growth has been stagnant over the past decade, with per capita GDP growing at an average annual rate of only 0.41% according to the World Bank. This is lower than many other developed countries, including Japan, Germany, and South Korea.

The root cause of this problem is weak investment, which is essential for future productivity and economic growth. Government policies that make investment more expensive or uncertain have contributed to this issue.

Between 2015 and 2024, Canada experienced a net outflow of $1 trillion in foreign direct investment, with two dollars leaving the country for every dollar invested. This 'capital recession' is unprecedented and has had severe consequences for the economy.

The Canadian government has finally recognized the problem and introduced measures to accelerate project approvals. However, the high cost of industrial carbon remains a significant obstacle, making Canada less attractive to investors.