Canada’s economy could grow dramatically over the next decade if businesses accelerate their adoption of artificial intelligence and respond to climate change pressures, according to a new report.
The study by PricewaterhouseCoopers (PwC) Canada, reported by The Canadian Press, estimates Canada’s GDP could reach $3.65 trillion by 2035, up from $2.89 trillion in 2023. It outlines three growth scenarios tied to how quickly key industries adapt to technological change, climate realities and global political tensions.
Nochane Rousseau, PwC Canada’s national managing partner, said the most optimistic forecast assumes co-operation across industries, public trust in AI and supportive government policies. “Considering the economic condition that we have in Canada and the uncertainty also related to the tariffs, some companies are not making the required investment,” Rousseau said.
The report highlights mining, technology and defence as sectors with strong potential if Canada narrows its AI adoption gap, which is currently about three-quarters of U.S. levels. It suggests businesses need to boost research and development and explore new ways to scale innovation.
Federal procurement policies prioritizing Canadian AI companies, combined with efforts to attract skilled workers and improve cybersecurity, could help accelerate adoption. Rousseau said Canada was an early AI pioneer but has struggled with commercialization.
Even under the most optimistic scenario, the report notes Canada would still lag behind U.S. growth, which could rise by as much as 14 per cent over its expected baseline.
(Written by: Joseph Goden)
