Posthaste: How Canada could trigger the biggest investment ‘supercycle’ in decades

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsPosthaste: How Canada could trigger the biggest investment ‘supercycle’ in decadesTD economists say $1 trillion in major projects could kickstart investment boom, but reforms are neededLast updated 14 minutes ago The LNG Canada liquefaction plant in Kitimat B.C. An expansion aimed at doubling Canada's LNG export capacity is on the major projects list. Photo by Rob Trendiak Photography/LNG CanadaTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountCanada is on the verge of an investment “supercycle” and its trade war with the United States might be the perfect time to make the bold changes needed to unlock it, according to a new report from Toronto-Dominion Bank.The bank forecasts Canada’s growth in real gross domestic product (GDP) will double by 2027, but notes there is a lot of “upside potential” for the future as many of the federal government’s big investments — data centres, pipelines and transportation infrastructure — are expensive and will take years to complete.“If governments can pair this ambition with a stronger competitiveness agenda, the investment backdrop can accelerate on its own accord, attracting and deploying private funds with fewer commitments from government coffers,” the report by TD economists Beata Caranci and Derek Burleton said.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againWith about $1 trillion in major projects already underway, TD Bank argues that if Canada is successful in getting these off the ground and completed smoothly, it could then attract more private investment and in turn more major projects. In this scenario, the bank said Canada could trigger a “self-reinforcing feedback loop” that could last more than a decade.To get there, however, TD Bank argues the country needs to lower regulations for major projects, eliminate tax disincentives and expand Canada’s skilled labour capacity.“If policymakers get it right and lean more heavily into creating a pro-competitive environment, the investment outlook could be in for a series of upgrades that defies recent history,” the report said.Now is also the perfect time to act, the economists say. Canada’s trade war with the U.S. has emphasized its need to change how it operates and by attracting more investment, the country could become less reliant on the U.S.“The U.S.-Canada trade dispute is a compelling reason for Canada to pull the levers that are fully within its control,” the report said. “This means prioritizing the creation of a competitive ecosystem across the nation, including trade diversification through infrastructure expansion.”This investment feedback loop would also have everyday benefits for Canadians. TD argues a multi-year investment boom would help with Canada’s sagging productivity, boost income for Canadians and increase government revenue.This report comes as Prime Minister Mark Carney is hoping to drum up billions in private investment for the economy. His government is hosting the first-ever Canada Investment Summit in September, which is meant to convene global business leaders to pitch them on investing in Canada.“Canada has what the world wants,” Carney said in a news release back in April. “We’re an energy superpower, with the most educated workforce in the world and rock-solid fiscal strength. The first-ever Canada Investment Summit will capitalize on those advantages to help drive billions in new investments into Canada.”This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Sign up here to get Posthaste delivered straight to your inbox.Canada announced this week that it is slapping counter-tariffs on more than 700 U.S. products in retaliation for the new set of import taxes from Washington.The Canadian tariffs, which start on Sept. 8, will apply to about $27.6 billion worth of American imports, including U.S. steel, aluminum, furniture, golf clubs, milk and clothing.Most of the items on Canada’s list, which is over 100 pages long, will face tariffs of 25 per cent or 50 per cent.Today’s chart shows which states will be hit the hardest by the new duties. Read moreU.S. Federal Reserve Chair Kevin Warsh delivers his address at Jackson Hole economic symposium at 10 a.m.Data: Canadian GDP for July, machinery and equipment price indexEarnings: Laurentian Bank of Canada, Chase Holdings Ltd., Frontline PLCPenalties for missing the tax filing deadline can really add up if they’re not dealt with promptly. Late fees escalate the longer they drag on and arrears interest compounds daily. Still, taxpayers have options for relief, including asking the CRA to waive the fees. Find out more from tax expert Jamie Golombek Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors.Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at wealth@postmedia.com with your contact info and the gist of your problem and we’ll find some experts to help you out while writing a Family Finance story about it (we’ll keep your name out of it, of course).McLister on mortgagesWant to learn more about mortgages? Mortgage strategist Robert McLister’s Financial Post column can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his mortgage rate page for Canada’s lowest national mortgage rates, updated daily.Financial Post on YouTubeVisit the Financial Post’s YouTube channel for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff and Bloomberg.Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? 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