Can Carney make Canada the strongest G7 economy?
Bank of Canada Governor Tiff Macklem, pictured with Finance Minister François-Philippe Champagne in Kananaskis last month for the G7 Finance Ministers and Central Bank Governors’ meeting. / G7 PHOTO
Announcing Canada’s priorities for the G7 Leaders’ Summit this weekend, Prime Minister Mark Carney made a bold declaration: “Canada is ready to lead.” Given the current economic volatility, the question is not just whether Canada should lead, but whether it can.
Carney’s ambition is clear: he wants Canada to not only host the summit, but also to emerge as the leader in a realigned global trade order.
Fifty years after its founding, the G7 stands at another inflection point. Much like its origins amid the 1970s oil shocks and Cold War tensions, this weekend’s meeting — which begins Sunday in Kananaskis, Alta. — must navigate inflationary pressures, technological disruption, and an increasingly fractured geopolitical order. Against this backdrop, Carney’s leadership priorities (protecting global security, accelerating the energy and digital transition, and building future-oriented economic partnerships) are ambitious in scope and urgent in tone.
But ambition alone is not enough. Turning aspiration into results requires economic strength and above all, public policy buy-in and the full engagement of Canada’s business community.
Gathering strains
Canada's economic fundamentals are solid but strained. Growth is sluggish, productivity and business investment lags behind other G7 countries, and inflation, though easing, remains a risk. At the same time, global trade patterns are shifting, with nearshoring, the imperative of decarbonization transition and great-power rivalry reshaping the map. President Trump's global tariff war has only exacerbated these already gathering stresses and strains.
To be the “strongest” G7 economy (however one defines that), Canada must assert leadership across the board, from economic resilience, technological competitiveness and strategic influence. It must show that it can act as a bridge between old alliances and new, and as a catalyst for coordinated, future-ready action.
In this light, Carney’s focus on critical minerals, AI and private investment meet the moment. Canada does indeed have what the world wants — abundant natural resources, a highly educated population, and political stability. The real challenge is mobilizing these assets into long-term economic leverage.
This is where Canadian businesses come in. If Carney’s G7 goals are to succeed, the private sector must be more than a beneficiary, it must be a driving force. Canadians must be able to see what is in it for them in terms of more and better jobs, new opportunities and growing incomes.
On energy and minerals: Canada’s mining and clean energy sectors must scale up production and processing of critical minerals like lithium and cobalt, while meeting sustainability expectations. Public-private partnerships, regulatory streamlining and export infrastructure investment are key.
Off the bench
On the digital transition: Businesses should lean into AI and quantum computing not as buzzwords, but as applied engines of productivity growth. On this point, the Canadian business community must match its endless warnings about weak Canadian productivity by finally getting off the bench and upping its investment game. It also means greater R&D collaboration with universities, faster tech adoption in traditional industries and a proactive approach to cybersecurity and digital ethics. It also means meaningful regulation and ethical frameworks that allow all of society to benefit.
On global partnerships: The G7 will explore ways to unlock private investment in emerging markets. Canadian firms can lead in building sustainable infrastructure abroad, not only strengthening global development but opening new markets for homegrown innovation.
Ultimately, Canada’s economic competitiveness will rest on its ability to align public ambition with private execution. Carney, a former central banker and global finance veteran, understands this better than most. His track record suggests a willingness to work closely with business — but also to challenge it when the stakes demand more.
Canada must navigate the treacherous waters of this year’s G7 with both principle and pragmatism. That includes championing Ukraine, reinforcing alliances and building trust with partners beyond the G7. As Carney rightly said, “our long-term security and prosperity will depend on building coalitions with reliable partners and common values.”
It’s a reminder that leadership is not only about asserting strength. It’s also about forging stability.
So, can Canada actually become the strongest G7 economy? In some dimensions, yes. In others, it can be a respected first mover or key influencer. But whether it ultimately achieves this depends less on the summit itself and more on what happens after: on the policies that unlock capital, the innovation that drives productivity and the courage to lead through complexity, not just commentary.
Canada has a rare chance to reframe its global role. But as the Prime Minister is fond of saying: A plan beats no plan. If businesses, governments and citizens are mobilized to act with shared purpose, the Kananaskis summit could mark not just a moment of Canadian leadership, but, indeed, a whole new era of Canadian leadership.
