08:47 AM EDT, 06/26/2025 (MT Newswires) -- Canada aims to lead the G7 in growth, noted Scotiabank.

The newly passed federal One Canadian Economy Act lays the foundation for "ambitious," nation-building projects, wrote the bank in a note to clients. These are inherently high-risk, high-reward ventures that demand early government investment to clear the path for private capital.

But those investments are just the tip of the iceberg. Governments across all levels hold roughly 70% of Canada's $1.4 trillion in infrastructure assets. Yet despite a surging population and an expanding economy, public investment has stalled-and service quality is slipping, stated Scotiabank.

A disciplined asset recycling agenda -- across all levels of government -- could redeploy capital from mature assets into the riskier and potentially transformational new investments - -without an over-reliance on new borrowing-bolstering both fiscal resilience and long-term economic growth, pointed out the bank.

Even a modest program could potentially generate $25 billion to $50 billion over five years, calculated Scotiabank. A more ambitious push could exceed $100 billion. That's before factoring in reinvestment ripple effects.

This isn't a backdoor to privatization, added the bank. Today's toolkit is smarter-shaped by past missteps-and includes long-term leases, minority stakes, and public-interest protections like super-profit and rate-cap clauses. Done right, asset recycling can attract long-term private capital, renew aging infrastructure, strengthen public finances, and protect the public interest.

Canada's investment ambitions are "big and risky," according to Scotiabank. Asset recycling can be both the catalyst and the safeguard to deliver results at scale.

It's essential to act deliberately: history shows that fire sales rarely serve the taxpayer. Better to move with intent-from a position of strength and foresight-while public asset owners still hold the upper hand, according to the bank.