FOR IMMEDIATE RELEASE
Calgary, Alberta — October 23, 2025 — Canada’s economy is stuck in neutral. Growth has slowed, living standards are slipping, wages have barely grown, and labour productivity remains sluggish. All these symptoms point to the same underlying problem: businesses aren’t investing enough in Canada.
A new report from the Business Council of Alberta (BCA), From Barriers to Breakthroughs: The High Cost of Low Investment, explores the roots of Canada’s economic slowdown and what must change to restore prosperity.
The High Cost of Low Investment is the second paper in BCA’s From Barriers to Breakthroughs series — a major research project examining Canada’s economic stagnation and the forces behind it. This newest paper takes a step back to understand the depth and origins of Canada’s investment shortfall by sector, by region, and by the kinds of capital Canada attracts. The analysis sets the foundation for BCA’s next phase of research, which will deliver actionable policy recommendations to help Canada regain its lost momentum.
A Challenging Policy Environment
“Regulatory complexity, slow approvals, and an uncompetitive tax system have made it harder for businesses to invest here,” said Mike Holden, BCA’s Vice-President of Policy and Chief Economist. “We’ve tied our own hands together with red tape. Good policy should clear the path, not block the way.”
Since 2014, business investment per worker has declined by an average of nearly 3% annually, with weakness across a range of industries. Business investment in Canada lags well behind other advanced economies, and is growing at half the pace as in the U.S.
This shortfall matters. When businesses invest — in technology, machinery, innovation, and infrastructure — it builds a path for innovation and prosperity that benefits all Canadians.
A Moment to Act
The good news: recent government actions suggest a recognition of some of these challenges, signalling that meaningful reform is possible. But there is much more that needs to be done to drive Canadian productivity and fuel tangible, long-term growth. From Barriers to Breakthroughs aims to build on that recent progress by providing concrete recommendations to rebuild Canada’s investment climate.
BCA’s roadmap to renewal focuses on three key reform priorities:
- Create a positive and investment-friendly policy environment
- Ensure faster, more predictable project approvals and a lower regulatory burden
- Develop a modernized tax regime that rewards investment, innovation and growth
Published in July, BCA’s first paper of the project, From Barriers to Breakthroughs: Early Steps to Unlock Canada’s Investment Potential, outlined immediate steps to get Canada back on track, and highlighted those three focus areas for BCA’s research, consultations, and recommendations.
The next phase of the project will advance practical recommendations to remove regulatory impediments to growth and reform the tax system to make it more competitive, less complex, and more supportive of business investment.
Read the full report, From Barriers to Breakthroughs: The High Cost of Low Investment, and stay updated on BCA’s work on this project by subscribing to our newsletter.
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About the Business Council of Alberta
The Business Council of Alberta is a non-partisan, non-profit organization dedicated to building a better Alberta within a more dynamic Canada. Composed of the chief executives and leading entrepreneurs of the province’s largest enterprises, Council members are proud to represent the majority of Alberta’s private sector investment, job creation, exports, and research and development. The Council is committed to working with leaders and stakeholders across Alberta and Canada in proposing bold and innovative public policy solutions and initiatives that will make life better for Albertans.