Alto High-Speed Rail Looks to Boost Canada’s GDP by $24.5 Billion Annually

Canada’s plans for its first high-speed rail network, known as Alto, are set to influence travel patterns and economic development across the Toronto–Québec City corridor and beyond.

Although the project is centred in Ontario and Quebec, its backers argue that the effects will extend nationwide as construction, operations and supply chains draw on skills and services from multiple regions.

Economic expectations

High-speed rail is often evaluated not only for its transport function but also for its wider economic contribution. In Canada, pre-project studies estimate that the Alto corridor could generate a recurring annual GDP gain of around 24.5 billion CAD—equivalent to roughly 1.1% of national output. For comparison, Canada’s agriculture, forestry and fishing sector typically accounts for between 1.5% and 2% of GDP.

The ten-year construction phase is projected to support more than 50,000 jobs across engineering, construction, architecture, planning, project management, IT, legal services and finance. These roles would shift as the project moves from early works to commissioning and operation.

Benefits beyond construction

The project has also highlighted potential gains in tourism and urban development. Faster journey times of around three hours between Montreal and Toronto, or approximately ninety minutes between Québec City and Montreal, are expected to make multi-city travel more practical for domestic and international visitors. Estimates suggest tourism-related activity could rise by about 800 million CAD annually.

What’s more, high-speed rail projects often influence real estate investment near stations and along connected corridors. This pattern, known as transit-oriented development, is expected to emerge around Alto’s planned stops. Forecasts indicate that more than 60,000 residential units could be built as part of this trend, with associated property-tax revenues for local authorities.

Project planners also anticipate a shift away from car use and short-haul flights for many intercity trips. Fewer vehicles on major roads could reduce congestion, with estimated time savings valued at about 570 million CAD each year. Improved reliability and shorter travel times across different transport modes are often linked to productivity gains. Because Alto would operate on an electrified network, this shift will also offer environmental benefits.

Lessons from other countries

International examples illustrate how high-speed rail can affect regional labour markets. In Japan, cities connected to the Shinkansen network recorded a 25% rise in business-service employment over a decade, attributed in part to improved accessibility. In Spain, the Madrid–Toledo line, completed in the mid-2000s, coincided with marked employment growth in Toledo, particularly in knowledge-intensive services such as legal, engineering and scientific consultancy.

These trends help explain why high-speed rail remains under development in several countries, including the United States, Australia, China, India and the United Kingdom. Globally, nearly 20,000 kilometres of high-speed track are currently under construction, with more in planning.

For Canada, the Alto project represents a significant shift in intercity mobility strategy. If delivered as planned, it is expected to influence competitiveness, productivity and regional development.