Business investment in Canada still below pre-2015 levels: down to 11.1% in 2025

Recent Capital Investment Not a Signal that Canada’s Business Investment Emergency Is Over;

Canadian News, Opinion | May 27, 2026

VANCOUVER—Investment in productivity-enhancing assets such as factories, machinery, equipment, and intellectual property (e.g. computer software) in Canada remains below pre-2015 levels, finds a new study released by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“When businesses invest in new factories, new equipment and new machinery, workers become more productive, and when workers are more productive, their standards of living increase,” said Steven Globerman, senior fellow at the Fraser Institute and author of Recent Capital Investment Not a Signal that Canada’s Business Investment Emergency Is Over.

“Unfortunately for Canadians, business investment is still below 2015 levels, which means worker living standards have been stagnating for the past decade.”

The study finds that private business investment in factories, machinery, equipment, and intellectual property (including computer software)—all of which help make workers more productive—has declined as a share of the overall economy over the last decade.

In 2014, such investments were nearly 14 per cent of the economy, whereas in 2025, they were just 11.1 per cent.

Crucially, the rapid growth rate of Canada’s labour force from 2022 to 2025, combined with the sluggish rate of capital investment has resulted in a decrease in the amount of investment per worker, which will prolong Canada’s productivity crisis.

“Increasing the rate of business investment is critically important for improving worker productivity, which in turn raises living standards for Canadians,” Globerman said.

Media Contact:
Steven Globerman, Senior Fellow, Fraser Institute

To arrange media interviews or for more information, please contact:
Drue MacPherson, Fraser Institute
604-688-0221 ext.721
drue.macpherson@fraserinstitute.org

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