The Deteriorating Investment Performance of New Brunswick: The Achilles Heel of the Economy

Leonel Ordoñez

No 2023-09, CSLS Research Reports from Centre for the Study of Living Standards

Abstract: This report provides a throughout analysis of investment trends in New Brunswick over the past six decades. Based on New Brunswick's investment growth, the share of investment in GDP and net investment, the overall picture suggests that the province's investment has weakened. Particularly since 2008, the province experienced a substantial fall in its gross investment which slightly picked up after 2015. The main driver of this development was nonresidential business investment in structural assets. This type of investment witnessed a sharp fall after the 2008-2009 economic crisis, and it was produced by the investment fall in the utility industry. In addition, although to a lesser extend, non-residential business investment in machinery and equipment (M&E) contributed to the overall investment fall. From 2000 to 2021, investment in M&E did not grow and its share of GDP experienced a steep downward trend.

Keywords: New Brunswick; investment; capital formation; non-residential investment; machinery and equipment; business investment; provincial economy (search for similar items in EconPapers)
Date: 2023-11
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