Investment in British Columbia: Current Realities and the Way Forward

Investment is one of the main drivers of productivity growth, which is the key determinant of living standards in the long run. Investment in British Columbia is lagging when compared to that of Canada, particularly in machinery and equipment and ICT investment. Going forward, a poor investment performance in BC would likely lead to below average growth in labour productivity, as was the case in the last 25 years. Weak labour productivity growth in BC would in turn translate into weak economic growth and falling relative standards of living over time. A number of measures may be taken to ensure sustained investment in physical capital in BC. This report puts forward a number of recommendations to increase investment in British Columbia.