Investment should improve in 2027 as measures to unlock private capital and streamline project approvals pull forward deferred spending.
“The real opportunity for growth will come from the combination of governments pushing forward with infrastructure investment, spending on defence, critical minerals and resources,” the report said, citing tax incentives, fewer internal trade barriers, reskilling and AI as keys to unlocking private dollars.
Prime Minister Mark Carney’s agenda includes infrastructure investment and a major projects office to speed reviews of nation-building projects, BNN Bloomberg reported.
Housing will stay a drag, with residential investment falling 2.6 percent in 2026 and housing starts easing to roughly 249,000 units from 259,000 in 2025, according to the report. Large markets diverge, Desjardins said.
“In large cities like Toronto and Vancouver, we continue to see significant weakness in the condominium market, and that doesn’t appear to be easing,” she said, though she pointed to firmer demand elsewhere and a recovery slower than most expected.
