Canadian Chamber on Federal Budget: 11/5/2025

Ottawa, Ontario, November 4, 2025 — After 18 months, Canada’s business community has been left waiting a long time for a federal Budget. The Canadian Chamber of Commerce’s GDP forecast is still at 1.52% for Q3. This low growth business environment has felt intractable in the face of economic disruption. The economy has fallen short of its true productive potential with external and self-imposed challenges to the business environment. 

“Canada has an urgent need to get back to a growing, productive economy,” said Candace Laing, President and CEO of the Canadian Chamber of Commerce. “In this federal Budget, the government has heard business’ call to focus on the economy and has made some tough choices to attract investment. Individual businesses — small, medium and large — will be the ultimate judges of whether this is enough to start making investments in Canada again.” 

The Investment Test  

Budget 2025 has focused on public backing of capital investments, setting new fiscal anchors and maintaining some reasonable restraint through operational cuts.  

“To attract capital investment to fuel the growth we need, the government is making some large expectations on returns,” said Matthew Holmes, Executive Vice President and Chief of Public Policy. “It will be up to businesses to see if this will be enough to spur the level of economic activity, return on investment and capital attraction the government hopes for. At the same time, we’re pleased to see the government has made some difficult reprioritizations and cuts, while also making significant new defence spending to meet our NATO commitments.” 

Trade Diversification for Businesses of All Sizes 

Small businesses have endured a tough year, weathering extra costs, lower consumer spending, and lingering supply chain pressures. Their trade partnerships have been impacted by the economic shifts, while also still overburdened by taxes and regulations.  

“Many business owners have used their personal savings to stay afloat — leaving little room to absorb new costs,” added Laing. “They’ve carried extraordinary burdens over the past five years but need breathing room to scale. Our Canadian Chamber Missions to new markets understand SMEs are critical to our economic DNA. We commend the government for investing in this diversification effort, so we’re not vulnerable to overreliance again.” 

Generational Budget: Finally Living Up to Our Commitments 

Our defence industrial base and our armed forces have long been left empty-handed at Budget time. Finally meeting international commitments would go a long way to Canada being seen as a reliable global partner.  

“The only thing generational about this budget is that this is the first time in generations that we’ve taken our NATO commitments seriously,” said Holmes. “This budget makes critical investments in the equipment and technology our men and women in uniform need to defend Canada at home and abroad.” 

Nation-Building in an Age of Discord 

Reliable investment depends on reliable governance. Uncertainty around the government’s ability to pass a budget, or the prospect of an election before key policies take effect, risk deepening the very crisis this Budget seeks to solve. 

“Economic uncertainty doesn’t just come from markets; it comes from divisive politics too,” said Holmes. “Investors and employers need stability, consistency and a sense that Canada can still nation-build in troubling times, which is why Parliamentarians must come together quickly to agree on a reasonable path to passage of a Budget — even if it sees some changes.”   

The Bottom Line 

Budget 2025 makes big promises, but only businesses can deliver most of them. Budget 2025 takes a step toward balancing fiscal restraint with targeted investment. But the test ahead is execution and follow through — ensuring that policies translate into real-world competitiveness and growth. 

“The world is competing for capital, and capital is mobile,” concluded Laing. “Canada has the talent, the resources and the potential to lead. Now, we need to prove that we can provide the certainty investors and businesses are looking for here at home.”