Government of New Brunswick
Capital_category

Grow investment from the private sector

Private-sector capital investment is critically important as an enabler of long-term growth. Company-level investment in forest products mills, other natural re­sources, manufacturing, back offices, research centres and a host of other activities show confidence in the economy. It also shows a long-term commitment, as those expenditures need to be amortized based on the success of the firm in the province.

To make those long-term commitments and deploy capital, companies must view New Brunswick as a good place in which to invest and make profits.

Annual private-sector capital expenditures between 2012 and 2015 were down by $1.2 billion per year compared to 2006-08 (a 40 per cent decline). This is one of the main reasons for the recent weakness in our economy.

Average annual private sector capital investment in New Brunswick ($ billions)

CapitalInvestmentChart

Source Statistics Canada CANSIM Table 029-0048

The New Brunswick Economic Growth Plan focuses government efforts on strategic areas that will foster the conditions to increase private sector investment

Deeper dive: Capital investment and the momen­tum effect

Companies that rely primarily on local markets base their investment decisions on the perceived health of the local economy. If the population is growing, if other industries are expanding and if there is a positive momentum in the economy, they are more likely to invest, creating a virtuous cycle of investment fostering growth and creating the need for more investment, and so on. After seven years of stagna­tion, we must build momentum in our economy.