Canadian Centre for Economic Analysis

Infrastructure Update 2018

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In 2011, the Residence and Civil Construction Alliance of Ontario (RCCAO) released “Public Infrastructure Investment in Ontario: The Importance of Staying the Course". From a macroeconomic perspective, the report concluded that over the course of 50 years, maximum GDP growth could be achieved if an average of 5.1% of GDP were invested in required infrastructure and 22% of the total infrastructure investment were to be spent on maintenance. The report also assessed Ontario’s just released 10-year “Building Together” infrastructure plan (Ontario Ministry of Infrastructure, 2011) and found that the investment trend would move from 3.0% to 3.5% GDP based on the commitments in this plan.

Given all the promises and the crucial nature of timely public infrastructure investment to the prosperity of a region, an updated analysis was commissioned by RCCAO to determine what progress has, or has not, been made towards infrastructure investment which would maximize Ontario’s prosperity.

The analysis conducted in this report supports the following conclusions: predictable, long-term infrastructure investments in Ontario are required for the province to reach its full economic potential; and long-term sustainability of infrastructure investment requires a more balanced approach between the federal, provincial and municipal governments.

To view the report, please visit the RCCAO's Infrastructure Modelling reports webpage.