A leading Canadian economist says proposed federal legislation, Bill C-5, could inject much-needed momentum into Canada’s economy by fast-tracking major investments and reducing long-standing barriers to interprovincial trade. Michael Dobner, National Leader of Economics and Policy Practice at PwC Canada, told BNN Bloomberg that the federal government’s policy direction is sending positive signals to investors and business leaders who have been cautious in the face of economic headwinds.
Dobner believes that if Bill C-5—formally known as the One Canadian Economy Act—is passed, it could help spark renewed mergers and acquisitions activity in 2026, especially by accelerating project approvals across Canada. “We are optimistic because we are hearing good signals from the federal government,” said Dobner. “Bill C-5 is suggesting that the government is very serious about moving projects much faster.” The legislation proposes to remove federal obstacles to interprovincial trade and improve labour mobility, while also establishing a statutory pathway for fast-tracking projects deemed to be of national importance.
A recent PwC Canada report underscores the urgent need for such reforms. In 2024, Canadian firms announced 1,068 deals worth $227 billion, but deal activity—particularly inbound and domestically sourced transactions—has slowed under the pressure of ongoing economic uncertainty and U.S. President Donald Trump’s renewed tariff measures. PwC’s baseline forecast for Canadian GDP growth in 2025 remains below one per cent.
Dobner said Bill C-5 is one piece of a broader policy package that could strengthen Canada’s long-term competitiveness. Among the government’s top priorities are large-scale infrastructure investment, streamlined regulations, increased defence and Arctic development, and modernization of immigration policy to better attract highly skilled talent. “We will probably see more investment starts to come in, especially if the signals from the government are continuing to show that it’s serious and it’s overcoming all the difficulties that it may face in trying to transform the Canadian government,” Dobner noted.
He also highlighted modular housing and critical minerals as two specific areas primed for investment, along with mining and defence, which are increasingly central to Canada’s strategic conversations with allies. “We have seen critical minerals, which we think is a big catalyst for the Canadian economy, being a key central point in the G7 discussion, as well as the negotiation between the U.S. and Canada,” Dobner said. “On the basis of the government showing seriousness and giving good signals, and the fact that our allies are coalescing around critical minerals, defence, and AI, we are more optimistic about what would happen in 2026.”
Despite the optimism, Dobner acknowledged valid concerns from Indigenous leaders and environmental advocates who warn that fast-tracked project approvals could come at the expense of Indigenous rights and environmental protections. The Chiefs of Ontario have publicly expressed worry that Bill C-5 may bypass critical consultation processes. Dobner responded by framing the situation in economic terms: “We are in an economic emergency,” he said. “I’m not putting out a political view, but from an economic standpoint, it may make sense.”
While the tone of PwC’s latest report is cautiously hopeful, it also warns that Canada’s recovery is far from guaranteed. Dobner emphasized that continued global volatility, a weakening U.S. dollar, or disruptions from emerging technologies could still undermine progress. Nevertheless, if the government can back its policy commitments with effective execution, 2026 may offer a more promising horizon for Canadian businesses and workers alike.