‘We are bleeding capital’ and that spells big trouble, report warns – by John Ivison (National Post – December 3, 2021)


The typical bank economist is so boring that a near-death experience would see someone else’s life flash before their eyes. They are, by nature, irresolute – “on the one hand….but on the other.”

That is why a special report that emerged from National Bank Financial this week was so startling – a compelling, unequivocal look at Canada’s investment climate by chief economist, Stéfane Marion. His conclusion: “We are bleeding capital.”

Statistics Canada released its latest figures for the country’s capital stock in 2020 two weeks ago, which suggested investment increased by 1.3 percent last year, down from 1.8 percent in 2019.

But those numbers include government investment in things like infrastructure. Marion stripped out public sector spending to look purely at private sector investment. He found for the first time on record, there was an absolute contraction in our capital stock, as new investment did not cover depreciation – a calamity for a small trading economy like Canada.

For the rest of this article: https://nationalpost.com/opinion/john-ivison-we-are-bleeding-capital-and-that-spells-big-trouble-report-warns