Canada’s first-ever Investment Summit wrapped up this week with the federal government declaring it had “unleashed” $500 billion in new investment, but experts who spoke with Canadian Affairs say it remains uncertain whether the summit’s announcements will translate into lasting economic gains.
Among the concrete outcomes was a proposed Productivity Mega Deduction, described by some experts as one of the most consequential tax changes in years. If passed, roughly 65 per cent of Canadian business capital assets would qualify for immediate expensing, a sharp jump from about 15 per cent today. Assets that would newly qualify include fibre-optic cable, pipelines, software, research and development spending, intellectual property, and infrastructure. Previously, immediate write-offs were largely limited to manufacturing, clean energy, and R&D-related assets. The change is seen as a potential tool for boosting business investment by reducing the effective cost of capital spending, at a time when improving Canada’s productivity has become a policy priority.
Airport Privatization Plans Raise Questions
A separate announcement drew more scrutiny: Ottawa’s pledge to open the operation of Canada’s four international airports to private investors through concessions and leases, while the federal government retains ownership of the underlying assets. Critics note that airports function as natural monopolies typically well-suited to public ownership, and that private operators would be taking on relatively little risk since the government has already built and absorbed the costs of these facilities.
Commentators pointed to the Ontario government’s 1999 sale of a 99-year lease on Highway 407 to a private consortium for about $3.1 billion as a cautionary precedent, noting the price was widely regarded as below market value and that tolls have risen steadily since. Canadian Press reporting cited this week also noted that airport privatization in Australia was followed by higher prices for passengers.
Foreign Investment Composition Under the Microscope
Questions were also raised about the composition of foreign direct investment (FDI) flowing into Canada. Kaylie Tiessen, chief economist at the Canadian Shield Institute for Public Policy, has previously told Canadian Affairs that mergers and acquisitions — a major component of FDI — do not necessarily create new economic activity, since they often simply transfer ownership of existing Canadian companies or assets to foreign buyers. In some cases, such deals can shrink Canada’s domestic economic capacity if corporate leadership, research operations, or intellectual property are subsequently moved abroad.
Figures cited by Canadian Affairs show FDI into Canada totalled $96.8 billion in 2025, with M&A activity accounting for roughly half of that sum and more than half originating from the United States. In the first half of 2026, total FDI reached $44.7 billion, with more than two-thirds coming from the U.S. — suggesting the reliance on American capital, and the share tied to acquisitions rather than new projects, may be growing. Statistics Canada told Canadian Affairs in June it could not provide data on how much of this investment translates into new productive capacity within Canada.
Pension Funds Pledge Billions in Domestic Investment
Several Canadian pension funds and banks also used the summit to announce large domestic investment commitments. The Canada Pension Plan Investment Board and Brookfield Asset Management jointly outlined a framework to each contribute up to $25 billion over five years toward large-scale infrastructure and strategic industries in Canada.
The timing and similarity of these commitments led some observers to question whether the funds had been encouraged by Ottawa to make the announcements. Analysts caution that while domestic investment by Canadian pension funds is broadly welcomed, it should not come at the expense of these funds’ core obligation to generate strong returns for pensioners, adding that investment decisions should be driven by financial merit rather than political considerations.
Overall, while the summit generated substantial media attention and headline investment figures, experts say it is too early to determine whether the announcements will produce durable economic benefits for Canada.
This article is for informational purposes only and does not constitute financial, investment, or legal advice. Consult a licensed financial advisor before making investment decisions.
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