Table of Contents
Top Headlines
- Prime Minister Mark Carney is promoting Canada as a major destination for global investment during the country’s first Canada Investment Summit in Toronto.
- The Canadian government says the summit has generated nearly C$500 billion in new investment commitments.
- Ottawa has announced a permanent Productivity Mega Deduction designed to encourage businesses to invest in Canada.
- The measure is expected to reduce Canada’s marginal effective tax rate on new business investment from about 13% to 6.4%, according to the federal government.
- Canada is seeking private investment through long-term operating concessions for its four largest airports while retaining public ownership of the underlying assets.
- Carney says Canada will not rush into a new trade agreement with the United States and will wait for conditions that Ottawa considers appropriate.
- Canada is also pursuing closer economic and strategic relations with the European Union as it seeks to diversify its international trade.
- The Bank of Canada has kept its benchmark interest rate at 2.25%, while warning that tariffs and elevated energy prices are creating economic uncertainty.
- Canada’s Q2 GDP increased at an annualized rate of 3.3%, while unemployment stood at 6.4% in July.
- The Bank of Canada is scheduled to publish its September 2026 summary of deliberations today, September 16.
Canada News Today: Investment Summit Takes Center Stage
Canada’s economic strategy is dominating the latest Canada news as Prime Minister Mark Carney seeks to attract international capital and reduce the country’s dependence on the United States.
The first Canada Investment Summit brought investors from nearly 30 countries to Toronto. The Canadian government says the event resulted in almost C$500 billion in new investment commitments, covering infrastructure, energy, technology, critical minerals and other strategic industries.
The government has set a longer-term target of attracting C$1 trillion in new investment over five years. Carney’s administration is presenting Canada as a competitive destination for companies looking for access to energy resources, critical minerals, technology and international markets.
Canada Introduces Productivity Mega Deduction
One of the biggest economic announcements is the Productivity Mega Deduction, which will make immediate expensing available for a broader range of business investments on a permanent basis.
Eligible investments include areas such as mining property, pipelines, software, research and development, computer equipment, aircraft, vehicles, rail infrastructure, bridges and roads. The federal government says the measure will reduce the marginal effective tax rate on new business investment to 6.4%.
The policy is intended to encourage companies to expand their operations in Canada and accelerate investment in productivity-enhancing equipment and infrastructure.
Canada-US Trade Relations Remain Uncertain
Relations with the United States remain another major issue. Canada and the US continue to face tariff disputes, creating uncertainty for businesses on both sides of the border.
Carney said Canada remains open to a future agreement but does not intend to rush into negotiations simply to reach a deal. He has emphasized the importance of maintaining a strong relationship with the United States while also making Canada’s economy more resilient.
The ongoing trade dispute has also encouraged Ottawa to explore new markets and strengthen economic relationships with other countries.
Canada Looks Toward Europe
Carney is travelling to Europe this week as Canada seeks deeper relations with the European Union. Ottawa is exploring a strategic partnership involving trade, investment, energy, defence and other areas.
Canada currently sends a large majority of its exports to the United States, making trade diversification an important part of the government’s economic strategy. Discussions with the EU are expected to develop further at a Canada-EU summit planned for Montreal later this year.
Bank of Canada Keeps Interest Rate at 2.25%
The Bank of Canada maintained its overnight policy rate at 2.25% on September 2. The central bank said Canada’s economy had strengthened during the second quarter, but warned that tariffs and high energy prices could create new risks.
GDP grew by 3.3% in the second quarter on an annualized basis after weak first-quarter growth. Consumption, housing activity, exports and business investment all contributed to the rebound.
However, inflation has remained close to 3%, partly because of higher gasoline prices. The Bank said inflation excluding gasoline was lower at 2.2% in July, while core inflation measures remained close to 2%.
