Bold Policy in Canada Could Unlock A Trillion-Dollar Investment Supercycle, TD Says

11:35 AM EDT, 08/26/2026 (MT Newswires) -- Bold policy could put Canada on track for a multi-year investment supercycle after years of weak capital spending, with the latest US trade escalation strengthening the case to seize the opportunity, according to TD Economics in a Wednesday note. More than 300 publicly announced projects across energy, critical minerals, transport, defense and Artificial Intelligence represent over C$1 trillion in potential investment over the next decade, TD said. This amount could rise between C$1.5 trillion to C$1.7 trillion if stronger private investment creates a self-reinforcing "flywheel," wrote TD Chief Economist Beata Caranci and Deputy Chief Economist Derek Burleton in the note. The opportunity is meaningful, but execution is key, the bank added. Faster permitting, fewer interprovincial barriers, a more competitive tax regime, easier business scaling and a larger skilled workforce are needed to turn project pipelines into real investment. Provinces will also be crucial to improving the regulatory and investment environment, according to TD. If successful, a sustained 7% annual increase in real investment could lift Canadian GDP growth toward 2% to 2.5% while boosting productivity, incomes and living standards. "The over-riding goal should be to create a natural private investment ecosystem over time that will reduce the need for public subsidies," the pair wrote.