Infrastructure spending and stimulus drive economic shifts in US and Canada

Major economic shifts are occurring through large-scale infrastructure and stimulus initiatives in North America. In the United States, Bank of America estimates that the Biden administration's infrastructure plan could inject up to $4 trillion into the economy. Strategists suggest that investors focus on cyclical, value, small-and-mid-cap stocks, as well as sectors benefiting from increased capital expenditures, such as industrials and metals. The plan is expected to emphasize green spending, including electric vehicle charging stations and energy-efficient buildings.

Former Obama administration staffers have noted the significant difference in scale between current stimulus efforts and the 2009 recovery efforts. Unlike the austerity-focused pivot seen after the Great Recession, current policymakers are pursuing much larger packages to avoid long-term economic scarring and inequality.

Meanwhile, Canada is projected to spend $4.7 trillion on infrastructure over the next 25 years, according to a PwC report. This boom is expected to be driven in part by the development of AI, with 159 data centers planned or under construction. This massive scale of investment presents significant opportunities for large infrastructure companies like Brookfield Corp.