Calgary’s downtown office vacancy rate topped 21% just last month.
Adding to the cost of doing business doesn’t help manufacturers and makes attracting investment to the province even more difficult.
A 15.5% drop in Q1 business investment tipped the economy into a small contraction.
Collapsing oil prices will take it’s toll on business investment, which is expected to drop by 23% this year.
Some companies expect the lower dollar to help them reclaim market share and increase competitiveness.
Companies in Ontario lead the charge, followed closely by BC and the Prairies.
Sluggish business investment is still holding back growth.
Report suggests lacking business investment isn’t being caused by financial limitations, but an unwillingness to do so.
Central bank says Canada’s exports require continued growth before companies increase investment and hiring.
It’s not all good news, as business investment slips 0.5% following a June increase of 5.4%.
CD Howe report finds that companies in Ontario and Quebec have hit a 10-year low in investment per worker.
Depressed export demand is keeping business from committing to new investments.
Businesses must adapt to complex new business practices, regulatory environments and economic opportunities.
But, he says Canada is less well-oriented to the sources of global growth; must focus on exports, business investment.
BoC governor says economy needs to move towards business investment and export growth.