Business investment won't be the economy's saviour

With exports hampered by the global economic slowdown and the nascent domestic housing downturn likely to hit housing investment and consumption too, a slowdown in Canada's overall economic growth would seem unavoidable. At a time when all levels of government are tightening fiscal policy, the only way that a slowdown can be avoided is if businesses step up investment fairly aggressively. Uncertainty and weaker corporate profits, however, suggest that businesses are likely to invest more conservatively over the second half of this year and next.