Canada is making smart economic decisions that are helping the country grow stably and inclusively. From supporting clean energy and advanced technology to improving access to global markets, these moves are creating jobs and boosting innovation. The government is also focusing on small businesses, skilled immigration, and infrastructure to build a stronger foundation for the future. Here are 20 Canadian economic moves that are paying off big.
Investing in Green Energy Projects
Canada has been increasing its investment in green energy to reduce its carbon footprint and support long-term sustainability. The government has allocated billions toward wind, solar, and hydroelectric power projects. Provinces like British Columbia and Quebec lead in clean electricity generation, with over 90% of their power coming from renewable sources. Federal programs like the Canada Growth Fund and Clean Technology Investment Tax Credit are encouraging private companies to join the clean energy push. These efforts are creating jobs, attracting green investors, and helping Canada meet its 2030 emissions targets while growing its economy sustainably.
Expanding Trade Agreements with Europe and Asia
Canada has strengthened its global trade position by expanding key agreements with Europe and Asia. The Comprehensive Economic and Trade Agreement (CETA) with the EU removes 98% of tariffs between Canada and European countries. Meanwhile, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) gives Canadian exporters better access to markets like Japan, Australia, and Singapore. These deals are helping Canadian businesses compete globally, especially in agriculture, manufacturing, and technology sectors. By reducing trade barriers, Canada is attracting more global partnerships and diversifying its trade beyond the US market.
Supporting AI and Tech Startups through Government Grants
Canada is becoming a leader in artificial intelligence (AI) by funding research and supporting startups in the tech sector. The Pan-Canadian Artificial Intelligence Strategy has invested over CA$125 million to strengthen AI research across cities like Toronto, Montreal, and Edmonton. Government programs like the Industrial Research Assistance Program (IRAP) and the Strategic Innovation Fund provide grants to early-stage tech companies. These initiatives help startups scale faster, develop innovative solutions, and compete internationally. With a growing talent pool and stable funding support, Canada’s AI sector is boosting productivity, creating high-income jobs, and attracting global tech investors to the country.
Attracting Foreign Direct Investment (FDI) with Tax Incentives
Canada offers competitive tax incentives to attract foreign direct investment (FDI), helping bring global businesses into its economy. Through programs like the Accelerated Investment Incentive, foreign firms receive fast capital cost allowances and tax write-offs. The country’s stable political environment, skilled workforce, and proximity to the US make it a preferred destination for multinational companies. In 2023, Canada attracted over CA$90 billion in FDI, with significant investment in sectors like automotive, clean energy, and pharmaceuticals. These efforts are creating new jobs, boosting exports, and enhancing Canada’s position as a business-friendly economy.
Boosting Infrastructure Spending Across Provinces
Canada has been boosting infrastructure spending to support long-term economic growth and improve public services. The Investing in Canada Plan committed over CA$180 billion to upgrade transportation, broadband internet, water systems, and community facilities across all provinces. Projects like light rail systems in Toronto and highway upgrades in Alberta are generating thousands of construction jobs. These improvements are helping businesses operate more efficiently while giving people better access to essential services. By modernizing infrastructure, Canada is laying the foundation for stronger regional economies.
Increasing Immigration to Fill Labour Gaps
Canada is using immigration to address labour shortages across many industries. Programs like the Express Entry system and the Provincial Nominee Program are helping attract skilled workers in fields such as healthcare, technology, and construction. Immigration is also supporting population growth in smaller towns that face worker shortages. Newcomers are filling key roles, starting businesses, and contributing to local economies. By focusing on a skills-based approach, Canada is strengthening its workforce. These efforts are making sure that economic growth continues across both urban and rural areas, helping businesses find the talent they need to grow.
Promoting Electric Vehicle (EV) Manufacturing
Canada is focusing on building a strong electric vehicle (EV) industry by supporting battery production and vehicle assembly. Major automotive companies are partnering with federal and provincial governments to set up new facilities. These projects include everything from mining raw materials to manufacturing final vehicles. Canada’s clean energy grid and experienced workforce give it an advantage in this growing sector. By promoting EV manufacturing, the country is creating skilled jobs and supporting clean transportation goals.
Strengthening the Agricultural Export Sector
Canada is expanding its agricultural exports by supporting farmers and improving access to global markets. Government programs are helping producers adopt better technologies, manage risks, and meet international quality standards. Trade agreements have opened up more opportunities for Canadian products like grains, pulses, and meat. Strong infrastructure and trusted supply chains make Canadian food exports reliable and competitive. These steps are helping rural communities grow, supporting farm incomes, and boosting Canada’s role in global food trade.
Funding Indigenous-Led Economic Development
Canada is supporting Indigenous-led economic growth by funding businesses, community projects, and partnerships. Programs offer access to financing, business training, and support for sectors like energy, tourism, and natural resources. These efforts are helping Indigenous communities create jobs, generate income, and strengthen local economies. There is also growing support for Indigenous control over land and resource development. By focusing on economic inclusion, Canada is promoting long-term self-reliance and reconciliation. Supporting Indigenous entrepreneurs and enterprises is a step toward building a fairer and more sustainable economy for everyone.
Supporting Women and Minority Entrepreneurs
Canada is encouraging entrepreneurship by increasing support for women and minority business owners. Programs offer loans, grants, mentorship, and networking opportunities to help underrepresented groups succeed. These initiatives aim to close funding gaps and provide equal access to business resources. By creating a more inclusive environment, Canada is unlocking new ideas and supporting job creation in diverse communities. Government and private partnerships are working together to remove barriers and promote fair competition. This support is helping more Canadians launch and grow successful businesses.
Enhancing Digital Banking and Fintech Regulations
Canada is improving its digital banking and fintech regulations to support innovation while protecting consumers. The government is working with financial institutions and startups to create clear rules that promote competition and safety. These updated regulations make it easier for new companies to offer digital payment systems, online lending, and other financial services. Open banking frameworks are also being developed to give people more control over their financial data. These changes are encouraging growth in the fintech sector, making banking more accessible, and helping both consumers and businesses benefit from secure, modern financial technologies.
Promoting Clean Hydrogen and Carbon Capture Tech
Canada is focusing on clean hydrogen and carbon capture technology to reduce emissions and create new economic opportunities. Governments are supporting research, pilot projects, and partnerships to advance these clean energy solutions. Clean hydrogen can be used in transportation, heating, and heavy industry, while carbon capture helps reduce pollution from large facilities. These technologies support climate goals and open new markets for Canadian expertise. By investing in innovation, Canada is helping industries lower their carbon impact and building a stronger, low-emission economy that can compete globally in the clean tech space.
Scaling Venture Capital Access for SMEs
Small and medium-sized enterprises (SMEs) are getting more support through improved access to venture capital. Canada is working with public and private investors to create funding programs that help startups grow and scale their operations. These efforts aim to close the early-stage funding gap that often limits business growth. By making venture capital more available, Canada is supporting innovation, encouraging entrepreneurship, and helping more companies succeed. This move also supports job creation and strengthens local economies.
Launching Canada’s Global Talent Stream Program
The Global Talent Stream program helps Canadian companies bring in skilled international workers quickly and efficiently. This program supports businesses in technology, engineering, and other high-demand fields by reducing wait times for work permits. Employers benefit by gaining access to global expertise, while workers get a clear and fast path to contribute to Canada’s economy. The program also encourages employers to invest in training and skill development for Canadian workers. This approach helps close talent gaps, supports business growth, and strengthens Canada’s position as a destination for top global talent.
Strengthening Pension Fund Investments in Innovation
Canada is encouraging its large pension funds to invest more in innovation and long-term growth sectors. These funds support areas such as clean energy, technology, infrastructure, and healthcare by backing promising companies and projects. This shift helps generate stable returns for retirees while boosting key parts of the economy. By investing in innovation, pension funds are playing a bigger role in shaping Canada’s future economy. The focus is on balancing risk with sustainable growth. These investments support job creation, promote research, and help develop industries that are important for long-term national development.
Expanding Public Transit in Major Cities
Canada is expanding public transit systems in large cities to support population growth, reduce traffic, and lower emissions. Investments are going into new subway lines, light rail systems, and bus networks. These upgrades make commuting faster, more reliable, and environmentally friendly. Improved transit helps people reach jobs, schools, and services more easily, while also making cities more livable. Better infrastructure also supports real estate development and local businesses. By focusing on public transit, Canada is building more connected urban areas that support both economic activity and a better quality of life.
Supporting Remote Work Infrastructure in Rural Areas
Canada is helping rural communities grow by improving infrastructure that supports remote work. This includes expanding access to high-speed internet, upgrading digital services, and offering training for digital skills. With better connectivity, more people can work from home, start online businesses, or take remote jobs with companies based in other regions. These improvements reduce the need to move to cities for employment and help balance economic activity across the country.
Reducing Small Business Taxes
Canada is lowering taxes for small businesses to support local entrepreneurship and job creation. Reduced corporate tax rates, along with targeted tax credits and deductions, are helping small firms keep more of their earnings. These changes make it easier for businesses to reinvest in growth, hire more workers, and improve operations. Simplified tax filing systems and government support programs are also making compliance easier for new business owners. By easing the tax burden, Canada is encouraging more people to start and sustain businesses, which strengthens communities and boosts long-term economic development across different sectors.
Improving Education-to-Employment Pathways
Canada is working to better connect education with employment by aligning training programs with labour market needs. Schools, colleges, and universities are offering more practical learning options like internships, co-op placements, and apprenticeship programs. These help students gain hands-on experience and build job-ready skills. Partnerships between industry and educational institutions ensure that training reflects real workplace requirements. This approach supports smoother transitions from school to work and reduces youth unemployment.
Increasing Investments in Quantum Research
Canada is investing in quantum research to position itself as a global leader in advanced science and technology. Quantum technologies have the potential to transform industries such as cybersecurity, healthcare, and finance. Government funding is supporting universities, research labs, and private companies working in this field. These investments help attract top talent, encourage innovation, and create high-tech jobs. Canada’s early focus on quantum science is laying the groundwork for breakthroughs that can drive future economic growth. Supporting this field ensures the country remains competitive in next-generation technologies that are shaping the global economy.
21 Products Canadians Should Stockpile Before Tariffs Hit
If trade tensions escalate between Canada and the U.S., everyday essentials can suddenly disappear or skyrocket in price. Products like pantry basics and tech must-haves that depend on are deeply tied to cross-border supply chains and are likely to face various kinds of disruptions
21 Products Canadians Should Stockpile Before Tariffs Hit
