By Nicole Cornett, Managing Editor, Expansion Solutions Magazine
Canada’s economic development in 2024 was marked by strategic investments, job creation, and innovation-driven growth. The government focused on fostering a net-zero economy, boosting research and productivity, and attracting private investment to strengthen the workforce. The country has avoided a recession despite global uncertainties, with inflation stabilizing and employment rates remaining strong.
Economic Growth and Investments
Canada saw significant foreign direct investment (FDI), ranking third globally in total FDI after the U.S. and Brazil. The government introduced $93 billion in major economic investment tax credits to drive growth and secure the future of Canadian businesses.
Technology Sector
Artificial Intelligence: Canada continues to be a powerhouse in AI research, with institutions like the Vector Institute in Toronto, Mila in Montreal, and the Alberta Machine Intelligence Institute (Amii) driving advancements. Investment in AI startups has grown by 35% year-over-year, with strengths in natural language processing, computer vision, and reinforcement learning.
Quantum Computing: Canada is making significant strides in quantum computing, attracting over $1 billion in investment in the past year. Companies like D-Wave Systems in Burnaby and Xanadu in Toronto are leading breakthroughs in quantum technology.
Cleantech Innovation: The cleantech sector has expanded by 25%, focusing on renewable energy, water technology, and sustainable agriculture. Companies like CarbonCure Technologies in Halifax and Eavor Technologies in Calgary are pioneering sustainable solutions.
Tech Talent & Workforce Trends: The demand for tech talent remains high, with 50% of HR leaders reporting a critical shortage of skilled professionals. AI adoption is helping bridge the skills gap, with 41% of executives seeing AI as a tool to enhance workforce productivity.
Emerging Tech Investments: Despite economic uncertainties, technology budgets in Canada have increased by 8% in 2024, signaling confidence in the sector’s growth. Companies are prioritizing customer experience, operational efficiency, and cybersecurity.
Canada’s tech landscape is evolving rapidly, with strong government and private sector support driving innovation.
Major Project Announcements
Canada entered agreements with NextStar Energy, Volkswagen PowerCo, and Northvolt Batteries North America to expand lithium battery cell and electric vehicle (EV) production.
NextStar Energy EV Battery Plant: This facility is part of Canada’s push to become a global leader in electric vehicle (EV) battery production. The plant is expected to significantly boost domestic battery manufacturing capacity.
Volkswagen PowerCo Expansion: Volkswagen has committed to expanding its battery cell production in Canada, reinforcing the country’s role in the EV supply chain.
Northvolt Battery Gigafactory: Northvolt is constructing a large-scale battery manufacturing facility in Canada, aimed at supporting the growing demand for EVs and energy storage solutions.
Site C Clean Energy Project: Located in British Columbia, this $16 billion project involves the construction of a hydroelectric dam on the Peace River. It’s expected to provide 1,100 megawatts of capacity and produce about 5,100 gigawatt hours of electricity annually.
GO Expansion – On-Corridor Works: This $15.7 billion project in Ontario aims to enhance the GO Transit rail network in the Greater Toronto-Hamilton Area. It includes track upgrades, new signaling systems, and electric trains.
Bruce Power Refurbishment: Valued at $13 billion, this project involves refurbishing six nuclear reactors at the Bruce Power plant in Ontario to extend their operational life and improve efficiency.
Darlington Nuclear Refurbishment: Another significant nuclear project in Ontario, this
$12.8 billion initiative focuses on refurbishing the Darlington Nuclear Generating Station to ensure its continued operation.
Eglinton Crosstown LRT: This $12.5 billion light rail transit project in Toronto aims to improve public transportation by adding a new 19-kilometer line with 25 stations.
The agreements with NextStar Energy, Volkswagen PowerCo, and Northvolt Batteries North America are projected to generate thousands of jobs across Canada, particularly in Ontario and Quebec, where many of these facilities are being built. Canada has secured billions in foreign direct investment, reinforcing its position as a global leader in EV battery production and critical minerals processing. These projects will strengthen Canada’s EV battery supply chain, ensuring domestic production of key components and reducing reliance on imports.
Innovation and AI Development
The Pan-Canadian Artificial Intelligence Strategy (PCAIS) allocated $20 million to institutions advancing AI research. Additionally, $19 million was directed toward 12 AI projects in Canada’s manufacturing sector to enhance competitiveness.
Canada has showcased resilience, innovation, and strategic investments that are shaping its future. With advancements in clean energy, artificial intelligence, and manufacturing, the nation has positioned itself as a global leader in sustainable economic growth. Government policies have strengthened infrastructure, encouraged foreign investment, and created new employment opportunities. While challenges remain, such as labor shortages and housing affordability, Canada’s proactive approach to economic expansion ensures long-term stability and competitiveness.
Looking ahead, the continued focus on technology, workforce development, and sustainability will be key in driving prosperity across industries and communities.
Canada’s economic trajectory in 2024 demonstrated resilience and adaptability, with investments in clean energy, AI, and workforce development shaping a sustainable future.
Sources:
1. https://budget.canada.ca/2024/report-rapport/chap4-en.html
2. https://www.oecd.org/en/publications/job-creation-and-local-economic-development-2024-country-notes_ad2806c1-en/canada_b02bbb3d-en.html
3. https://ised-isde.canada.ca/site/planning-performance-reporting/en/departmental-plans/innovation-science-and-economic-development-canadas-2024-2025-departmental-plan
