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Overview
Canada performs well in the infrastructure category, but its score remains static in the forecast period. Owing to its vast territory, Canada has an extensive road and highways network, but its widely dispersed population has limited access to a reliable, cross-country passenger rail service. The Liberal government's "Investing in Canada" plan is providing C$33.5bn (US$24.8bn) over 11 years for public infrastructure works. As at early 2024, about 3,600 projects had been approved under this programme. Funding is directed through four main streams: public transit; green infrastructure; community, culture and recreation; and rural and northern communities. The Canada Infrastructure Bank, an arm's-length Crown corporation set up in 2017, had approved investments valued at C$8.6bn in nearly 50 projects across the country by early 2024. Canada's renewable energy sector is also maturing impressively and it has abundant hydroelectric capacity.
Strengths
According to the Canadian Radio-television and Telecommunications Commission, a government agency, just under 90% of Canadians have access to unlimited fixed broadband with internet speeds of up to 50 megabits per second (Mbps), although coverage is patchier in rural areas. The government is providing funds to lift coverage to 100% by 2031, and this target is currently on track (a rarity even among developed and G7 countries). The agency says that 99.5% of Canadians have access to 4G mobile wireless services. Renewable sources (mainly hydro) generated 59% of the electricity produced in Canada in 2022. The country generates more electricity than it needs and typically exports nearly 10% of it to the US (although some provinces also import power).
Weaknesses
Canada's fossil-fuel industry is facing a period of heightened uncertainty during the transition to a low-carbon economy, even though global oil prices will remain high. The oil industry and Alberta's provincial government have called for the construction of more pipelines to export more crude oil to global markets. Existing pipelines to the US have reached near capacity in recent years, forcing exporters to move more crude oil by rail. However, a combination of the high cost of extracting Canadian crude (relative to its competitors), vociferous complaints from indigenous Canadians regarding plans for pipelines to traverse their lands and the concerns about long-term demand for crude oil mean that new pipelines have become a risky economic proposition.