Canada Must Invest $1.8 Trillion to Regain G7 Competitiveness, Says RBC

According to a staggering new report from the Royal Bank of Canada (TSX: RY), a net outflow of $1 trillion between 2015 and 2024 marked the most significant capital exodus in modern Canadian history. For every single dollar that found its way into the Great White North over the last ten years, two dollars packed their bags and left. Jordan Brennan, managing director at RBC Thought Leadership, pointed out that while Canadian investment abroad isn’t inherently a bad thing, this particular drain happened precisely when the domestic market was starved for capital. The stark reality is that Canada currently sits dead last among its G7 peers in capital investment, pouring only half as much into machinery, equipment, and intellectual property as its neighbors in the United States.

However, the financial tide might finally be turning. Last year saw foreign direct investment in Canada swell to nearly $100 billion. It was a milestone moment, marking the highest level since 2015 and the first time in ten years that capital inflows actually eclipsed outflows. Global investors, jittery from worldwide economic uncertainty, are suddenly viewing Canadian energy and infrastructure projects as a safe harbor. To capitalize on this rare moment of momentum and assert true industrial dynamism, RBC outlines a bold mandate: Canada must mobilize a staggering $1.8 trillion in investments over the next ten years.

This mammoth war chest isn't meant for a scattergun approach. The bank has pinpointed six vital sectors that desperately need financial fuel to secure the country's economic future: oil and gas, electricity, metals and minerals, agriculture, defence, and space.

Transforming Canada into an undisputed energy superpower will require a massive $705 billion injection into the oil and gas sector. This capital would build out new pipelines and LNG terminals while simultaneously funding large-scale carbon capture and sequestration technology to aggressively manage emissions. Meanwhile, the national electricity grid needs a $670 billion facelift. With the surge of electric vehicles, data centers, and general building electrification, energy demand could easily double by 2050. RBC bluntly notes that the current grid, built over half a century ago, requires massive modernization to remain both reliable and affordable. Furthermore, expanding renewable sources like wind and nuclear will be paramount to meeting this surging demand.

The ultimate irony of Canada's recent investment drought is that the country is essentially swimming in cash. The funds exist, primarily locked up in the multi-trillion-dollar coffers of the renowned "Maple Eight" pension plans. The hurdle isn't a lack of capital; it is a structural mismatch. Mega-investors possess strict deployment thresholds and require massive, scalable projects to justify their involvement. Canada, however, is dominated by mid-sized companies that simply lack the gravitational pull to attract that specific tier of mega-financing.

Brennan emphasizes that helping these mid-sized players secure the "extra leg of capital" needed to scale up is the missing piece of the puzzle. The global competition for capital is intense, and Canada is playing a high-stakes game of catch-up. Having missed the last ten years of investment waves, the pressure is squarely on current business leaders and policymakers to rewrite the playbook and finally put Canada's own money to work at home.

Source:

Karim, Naimul. "Canada needs to invest $1.8 trillion over the next decade in six key sectors, says RBC." Yahoo Finance, April 14, 2026.