While Canadian media is understandably consumed by the short-term chaos and upheaval in Ottawa, Century Initiative continues to urge legislators to focus on the long-term planning needed to support smart, responsible growth.
This is especially important in the context of recent immigration cuts, which a report from the Conference Board of Canada found will significantly slow economic growth. This research revealed that Ottawa’s policy decision will lower real GDP by$7.9 billion in 2025 and $16.2 billion in 2026, with the potential of shaving 0.3 percentage points off real GDP growth in those two years.
In other words, immigration cuts have a cost, and we need governments to think creatively about decisions that will make us more competitive to offset those cuts. Political instability and accumulation of excessive debt (particularly on inherently short-term measures like the $1.6billion GST holiday) worsen the problem.
While tariff threats cannot reasonably be expected to be resolved overnight, this budget does not provide the robust plan needed to unlock Canadian investment and secure supply chains in this protectionist environment.
We know that supporting greater investment and research that can help businesses scale and operate more productively is critical to our future prosperity. The government should be recognized for bringing forward initial steps in the right direction towards encouraging capital investment, innovation, and growth.
Century Initiative has long advocated for expansions and enhancements to the Government’s Scientific Research and Experimental Development Tax Credit, one of Canada’s central supports for the innovation economy. To that end, we were encouraged by the reforms announced in advance of FES, including allowing businesses to claim capital expenditures again.
We also need to play catch up in bolstering our business and technology environment. We applaud the commitment to augmenting compute infrastructure and capacity across Canada through the Sovereign AI Compute Strategy.
While these proposals are positive in isolation, sudden swings and instability in Canadian politics do not serve Canada’s long-term prosperity well, and more ambition is required to address the housing affordability crisis in Canada, which is also a critical drag on our productivity.
Century Initiative will continue to advocate for a national smart growth framework that aligns immigration with strategic and connected investments in housing, infrastructure, and public services. We must all work together to secure a bigger, bolder and more prosperous Canada for generations to come.
