Municipal Infrastructure Investments Can Boost Canada's Economy
New research by the Federation of Canadian Municipalities (FCM) highlights the importance of investing in local infrastructure to boost Canada's economy. The study, developed in collaboration with PSD CityWide, found that every dollar spent on municipal infrastructure generates approximately $1.05 in Gross Domestic Product and more than $2 in overall economic activity.
The findings also showed that a sustained 10-year local infrastructure investment strategy could permanently increase the country's economic output by roughly $17 billion annually. This would create seven jobs for every $1 million invested, making it an attractive option for governments looking to stimulate growth and job creation.
Despite these benefits, municipalities in Canada face an infrastructure deficit of approximately $240 billion. FCM is urging the federal government to prioritize municipal infrastructure investment by accelerating and enhancing long-term funding through existing programs, addressing the growing infrastructure deficit, and investing in climate adaptation infrastructure.