1. IDENTIFY THE KEY DETERMINANTS FOR ECONOMICS GROWTH 2. Currently Canada's level of capital formation (investment as percentage of GDP) is at a record low and been dropping like a stone for the past few years. Housing 'investment' has soared. Should we be concerned? Chart: Covid-related factors have had residential investment making up a larger share of GDP than business investment over the past year Share of GDP (9%) 15 10 5 0+ 1990 1995 2000 2005 2010 2015 2020 Business fixed investment Residential investment Source: Statistics Canada, CIBC 3. PROVIDE 3 IDEAS that the government might want to implement in order to increase capital formation in the country. Given the bad state of public finances the government cannot be seen increase in spending, hence subsidies are not an option