Canada’s economy faces serious challenges, but business leaders have outlined four crucial priorities to guide recovery and future growth, including AI, energy, and military production.
As Canada prepares for the upcoming election, the road to economic recovery is a hot topic. With years of stagnation, the nation faces an escalating trade war with the U.S., leaving whoever wins the election with the enormous task of rebuilding the economy. However, Canadian business leaders are optimistic, seeing this as a generational opportunity for growth.
Business leaders from various sectors have outlined four key priorities that they believe are critical for the country to revitalize its economy and stay competitive on the global stage. These priorities aim to capitalize on Canada’s existing strengths while addressing the pressing challenges posed by economic uncertainty and global tensions.
1. Speed Up Approvals for Natural Resources Projects
One of the most pressing concerns voiced by Canadian energy executives is the need to accelerate the approval process for energy infrastructure projects. François Poirier, CEO of TC Energy, highlighted the importance of strengthening Canada’s economic sovereignty by enabling faster development of natural gas and energy resources.
“We can do this by delivering energy security and enabling emission reductions for our allies through exporting Canadian liquefied natural gas,” Poirier said.
The recent trade tensions, particularly with the U.S., underscore the urgency of enhancing Canada’s energy infrastructure. In response, both the Conservative and Liberal parties have promised to speed up the approval processes for energy projects, including pipelines and renewable energy systems, to bolster energy security and meet international demands.
Despite some regulatory hurdles, energy CEOs have called for a streamlined process to ensure projects proceed without unnecessary delays, stressing that Canada must seize this critical opportunity to lead on the global stage.
2. Remove Interprovincial Trade Barriers
Canada’s internal trade barriers have long been an obstacle to economic growth, restricting businesses from operating seamlessly across provinces. Richard Dias, macro strategist at IceCap Asset Management, described the removal of these barriers as the “dumbest and easiest problem to solve.”
A 2019 IMF study concluded that removing these barriers could lead to a 3.8% rise in Canada’s GDP per capita, with smaller provinces like P.E.I. potentially seeing GDP increases of up to 16%. These findings underscore the potential benefits of eliminating unnecessary restrictions on interprovincial trade.
As the federal government continues to work on eliminating certain federal exceptions within the Canadian Free Trade Agreement, leaders and analysts alike urge the new government to prioritize this issue to unlock economic potential.
3. Manufacture Military Equipment
With defense spending set to rise, Canada has an opportunity to capitalize on military equipment manufacturing. Both the Liberal and Conservative parties have committed to meeting NATO’s defense spending target of 2% of GDP, which would require an additional $12 billion per year.
David Perry, president of the Canadian Global Affairs Institute, emphasized that defense spending has a significant multiplier effect on the economy. Every dollar spent on defense creates roughly two jobs and generates double the economic activity through direct and indirect channels.
Canada is already home to several key manufacturers of military equipment, including armored vehicles and drones. By investing in military production, Canada could not only boost its economic output but also create new high-paying jobs, benefiting both local communities and the national economy.
4. Leverage Canada’s AI Advantage
Artificial intelligence (AI) has become a major economic driver, and Canada is well-positioned to lead the world in this field. Geoffrey Hinton and Yoshua Bengio, two of the biggest names in AI, are leading groundbreaking research at Canadian universities, making Canada a hub for AI innovation.
In a recent TED talk, Eric Schmidt, former CEO of Google, remarked on Canada’s ability to provide the necessary energy infrastructure for AI data centers, noting Canada’s abundant hydroelectric power as a strategic advantage. Schmidt called on the country to position itself as a global AI leader, leveraging its natural resources to fuel innovation.
While the Liberals have committed to investing $2.4 billion in AI, the Conservative platform suggests scaling back investment. Regardless of the election outcome, AI investment will be key to driving future growth, with the potential to create millions of high-tech jobs and strengthen Canada’s global competitiveness.
Will Canada Seize the Opportunity?
While the next prime minister will inherit a challenging economic landscape, the priorities outlined by business leaders provide a roadmap for recovery. From accelerating energy infrastructure projects to removing interprovincial trade barriers, these steps can pave the way for a stronger, more resilient Canadian economy.
However, the real challenge will be executing these priorities effectively, particularly in a time of economic uncertainty. As we look ahead, the future of Canada’s economy hinges on its ability to capitalize on its strengths, such as natural resources, manufacturing, and AI innovation. But only time will tell if the new government will take the necessary steps to unlock the full potential of the Canadian economy.
Stay tuned to Maple News Wire as we continue to follow these developments and bring you the latest insights into Canada’s economic recovery efforts. As the country faces a critical juncture, we’ll be closely watching how policymakers and business leaders shape the future of Canada’s economy in the face of global challenges.
