Canada on the Cusp of Investment Surge, NBF’s Marion Says
National Bank Financial Chief Economist Stéfane Marion says Canada is entering a new era of business investment after a decade of stagnant growth, forecasting increased foreign capital as the federal government cuts taxes, reduces regulation and accelerates major projects. Marion said Canada’s abundant natural resources and electricity could make it an increasingly attractive investment and trade partner, while an eventual easing of U.S.-Canada trade tensions could further strengthen the outlook. He expects the resulting investment and fiscal stimulus to boost economic growth but also increase inflationary pressures, potentially prompting the Bank of Canada to raise interest rates next year.
