With restrictions on foreign investment, government interventions, cross-border trade restrictions, and state owned monopolies, the GDP of industries that are highly sheltered from competition is approximately 20.6%, down from 22.3% in 2017.
“However, when factoring in broader restrictions such as interprovincial trade barriers, occupational licensing, and healthcare regulations, nearly one-third of Canada’s economic activity remains affected
by competition-limiting policies,” said Rob Hong, co-founder & CEO of Sapling Financial Consultants. “This underscores the critical need for reforms to reduce these barriers, foster innovation and unlock the full potential of our economy.”
Impact on consumers and jobs
Among the industries set to benefit from increased investments and modernization in 2025 are telecoms, utilities and renewable energy, but the report calls on policymakers to ensure that restrictions on competition is addressed to avoid consumers being adversely impacted through rising prices due to concentrated dominance.
For example, those in rural areas may face higher prices for telecoms and broadcasting due to limited choice unless foreign investment restrictions are eased.
