Canada: update on capital stock

Capital stock value grew nine percent per year, reflecting revisions to the underlying economic data and recent trends in construction activity.

Gross fixed capital investment flows and prices were revised by the country’s statistics office (Statistics Canada) from 2020 to 2023 in accordance with periodic revisions to national accounts statistics. Statistical revisions are carried out regularly to incorporate the most current information available and generally impact the preceding two to three years. Over this period, real estate values were revised upwards to reflect updated real estate property records.

From 2020 to 2023, construction price inflation in Canada has significantly outpaced growth in overall prices. In 2023, construction activity began to slow, driven by a slowdown in residential construction. According to Statistics Canada, the slowdown is a result of lower investment in new construction and renovations to existing structures, coinciding with deteriorating credit conditions and rising mortgage interest rates.