--- canonical_url: "https://csls.ca/research/the-deteriorating-investment-performance-of-new-brunswick-the-achilles-heel-of-the-economy/" title: "The Deteriorating Investment Performance of New Brunswick: The Achilles Heel of the Economy" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-01T12:46:54+00:00" date_modified: "2026-07-01T12:46:54+00:00" post_type: "research" summary: "" post_tag: - "business investment" - "capital formation" - "investment" - "machinery and equipment" - "New Brunswick" - "non-residential investment" - "provincial economy" country_focus: - "Canada" province_region: - "NB" research_theme: - "Fiscal Policy" - "Regional Economic Development" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # The Deteriorating Investment Performance of New Brunswick: The Achilles Heel of the Economy Canonical URL: https://csls.ca/research/the-deteriorating-investment-performance-of-new-brunswick-the-achilles-heel-of-the-economy/ # The Deteriorating Investment Performance of New Brunswick: The Achilles Heel of the Economy [Download full PDF report](https://csls.ca/pdf/csls2023-09-1.pdf) Cite this report × Cite this report as: Ordoñez, Leonel. 2023. “The Deteriorating Investment Performance of New Brunswick: The Achilles Heel of the Economy.” CSLS Research Report 2023-09. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/the-deteriorating-investment-performance-of-new-brunswick-the-achilles-heel-of-the-economy/ ## Author: - Leonel Ordoñez Centre for the Study of Living Standards (CSLS) ## Report 2023-09 November 2023 99 pages ## Related research [The Canada-Atlantic Canada Manufacturing Productivity Gap: A Detailed Analysis Andrew Sharpe December 2003 | Report 2003-08 | 127 pages](https://csls.ca/research/the-canada-atlantic-canada-manufacturing-productivity-gap-a-detailed-analysis/) [The Diffusion and Adoption of Advanced Technologies in Canada: An Overview of the Issues Andrew Sharpe December 2005 | Report 2005-05 | 23 pages](https://csls.ca/research/the-diffusion-and-adoption-of-advanced-technologies-in-canada-an-overview-of-the-issues/) [Three Policies to Improve Productivity Growth in Canada Andrew Sharpe December 2007 | Report 2007-05 | 49 pages](https://csls.ca/research/three-policies-to-improve-productivity-growth-in-canada/) [Productivity Drivers in British Columbia: Strategic Areas for Improvement Andrew Sharpe, Jean-François Arsenault December 2008 | Report 2008-09 | 33 pages](https://csls.ca/research/productivity-drivers-in-british-columbia-strategic-areas-for-improvement/) [Investment in British Columbia: Current Realities and the Way Forward Andrew Sharpe, Jean-François Arsenault, Peter Harrison December 2008 | Report 2008-10 | 66 pages](https://csls.ca/research/investment-in-british-columbia-current-realities-and-the-way-forward/) [The Productivity Performance of Atlantic Canada Peter Harrison, Andrew Sharpe December 2009 | Report 2009-14 | 149 pages](https://csls.ca/research/the-productivity-performance-of-atlantic-canada/) [A Detailed Analysis of Nova Scotia’s Productivity Performance, 1997-2010 Andrew Sharpe, Ricardo de Avillez June 2012 | Report 2012-05 | 131 pages](https://csls.ca/research/a-detailed-analysis-of-nova-scotias-productivity-performance-1997-2010/) [The Key Challenge for Canadian Public Policy: Generating Inclusive and Sustainable Economic Growth Don Drummond, Evan Capeluck, Matthew Calver September 2015 | Report 2015-11 | 296 pages](https://csls.ca/research/the-key-challenge-for-canadian-public-policy-generating-inclusive-and-sustainable-economic-growth/) [Innovation in New Brunswick Kimberly Wong September 2020 | Report 2020-08 | 94 pages](https://csls.ca/research/innovation-in-new-brunswick/) [The Productivity Performance of New Brunswick Manufacturing: A Detailed Analysis, 1997-2019 Andrew Sharpe June 2021 | Report 2021-03 | 93 pages](https://csls.ca/research/the-productivity-performance-of-new-brunswick-manufacturing-a-detailed-analysis-1997-2019/) ## Abstract ## Résumé EN FR Copy link Email LinkedIn This report provides a throughout analysis of investment trends in New Brunswick over the past six decades. Based on New Brunswick’s investment growth, the share of investment in GDP and net investment, the overall picture suggests that the province’s investment has weakened. Particularly since 2008, the province experienced a substantial fall in its gross investment which slightly picked up after 2015. The main driver of this development was nonresidential business investment in structural assets. This type of investment witnessed a sharp fall after the 2008-2009 economic crisis, and it was produced by the investment fall in the utility industry. In addition, although to a lesser extend, non-residential business investment in machinery and equipment (M&E) contributed to the overall investment fall. From 2000 to 2021, investment in M&E did not grow and its share of GDP experienced a steep downward trend. Ce rapport fournit une analyse approfondie des tendances de l’investissement au Nouveau-Brunswick au cours des six dernières décennies. Sur la base de la croissance de l’investissement, de la part de l’investissement dans le PIB et de l’investissement net du Nouveau-Brunswick, le portrait global indique un affaiblissement de l’investissement de la province. En particulier depuis 2008, la province a connu une chute substantielle de son investissement brut, qui s’est légèrement redressé après 2015. Le principal moteur de cette évolution a été l’investissement des entreprises non résidentielles dans les actifs structurels. Ce type d’investissement a connu une forte chute après la crise économique de 2008-2009, attribuable à la baisse de l’investissement dans le secteur des services publics. De plus, dans une moindre mesure, l’investissement des entreprises non résidentielles en machines et matériel (M&M) a contribué au déclin global de l’investissement. De 2000 à 2021, l’investissement en M&M n’a pas progressé et sa part du PIB a connu une forte tendance à la baisse. [Download full PDF report](https://csls.ca/pdf/csls2023-09-1.pdf)