Our team of analysts provides a preliminary assessment of the 2025 Canadian federal budget’s broad-based items, focusing on capital markets–related themes and sector-specific insights.1
We view the budget as a constructive step toward the country’s Building Canada and security initiatives. The report highlights the key priorities of building, empowering, and protecting Canada through strategic investments and initiatives. Our team expects impacts to be mixed across various sectors, and debate is expected regarding the level and ambition of public spending.
The budget includes a headline investment of $280 billion, designed to enable $1 trillion over five years through public-private partnerships. The focus is on shifting government spending from daily operations to long-term capital investments to foster economic growth. Infrastructure and productivity/competitiveness constitute 80% of the capital investments, with defence and housing comprising the remaining 20%.
Sector impacts. The budget aims to renew Canada’s industrial strategy, favouring sectors that build tangible assets and enhance domestic production over consumer-driven growth. The budget is designed to benefit companies in the Industrials, Materials, Technology, and Utilities sectors and signals a clear government preference for investing in domestic production, supply chains, and long-term infrastructure over short-term consumer stimulus. Investors will likely see this as a green light for real asset and technology-focused investment themes within the Canadian market.
Real estate impacts and open banking. The government’s plans to stabilize permanent resident admissions and reduce the target for new temporary resident admissions, along with the launch of “Build Canada Homes” and a $1.5 billion Rental Protection Fund, may benefit housing. An eventual move toward open banking is expected to create growth opportunities for non-bank competitors and new entrants, fostering innovation and competition in the financial sector.
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1According to the Canadian Federal Budget released on Nov 4, 2025.
