OTTAWA, Feb. 26 (Xinhua) -- Canada's capital expenditures on non-residential construction and machinery and equipment are expected to increase 7 percent to 266.2 billion Canadian dollars in 2021, according to Statistics Canada.
The increase will come after a drop of 9.2 percent in 2020 largely due to the economic shock from the COVID-19 pandemic.
While capital spending on non-residential structures is expected to reach 175.2 billion Canadian dollars, up 7.5 percent from 2020 and surpassing the level in 2019, the 91 billion Canadian dollars anticipated for machinery and equipment falls short of fully offsetting the 13.4 percent decline reported in 2020.
Capital spending by public sector organizations is anticipated to increase by 9.3 percent, advancing on the 5.7 percent growth in 2020.
Investments in privately held non-residential tangible assets are expected to rise 5.6 percent in 2021, well short of compensating for the sizable 16.7 percent decline in 2020.
Of the 20 industrial sectors, 14 have indicated plans to increase their capital expenditures in 2021, compared with five in 2020 and 15 in 2019.
The transportation and warehousing sector is expected to lead the way for investment in Canada in 2020 and 2021, reinforcing its critical logistical role in the economy.
Capital spending is set to reach a record of 47.9 billion Canadian dollars in 2021, up 7.2 percent, following a gain of 4.9 percent in 2020 and a significant increase of 19.5 percent in 2019.
Capital spending in the mining, quarrying, and oil and gas extraction sector is set to increase to 32.9 billion Canadian dollars, up 5.2 percent in 2021, following a substantial decrease of 14.7 billion Canadian dollars, down 31.9 percent in 2020.
Significant reductions in capital spending occurred in 2020 with a decrease of 29.9 percent and are expected to continue down 26.6 percent in 2021 in the accommodation and food services sector, as it was directly affected by government public health restrictions against the COVID-19 pandemic.
One Canadian dollar is about 0.79 U.S. dollar.