FDI in Canada

Overview by Globlatrade.net:

FDI in Figures

Since the economic recovery, foreign direct investment (FDI) in Canada, which during the previous decade had grown by 9% per year on average, has been slow and more concentrated. This trend should continue in 2011.

Canada’s main attractions are its highly-skilled population, its abundant natural resources, its commercial dynamism and fiscal incentives, its competitiveness in key sectors (communications, transit, financial services), as well as its geographic proximity to the world’s number one economy, the United States.

Foreign Direct Investment 2007 2008 2009
FDI Inward Flow (million USD) 108,414 55,270 18,657
FDI Stock (million USD) 516,283 441,638 524,938
Performance Index*, Ranking on 141 Economies 40 73 100
Potential Index**, Ranking on 141 Economies 12 11 -
Number of Greenfield Investments*** 168 215 254
FDI Inwards (in % of GFCF****) 33.5 16.2 21.7
FDI Stock (in % of GDP) 36.3 29.5 39.3

Source: UNCTAD

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.


FDI Inflows By Countries and Industry

Main Investing Countries 2009, in %
United States 52.5
United Kingdom 11.6
The Netherlands 8.5
Switzerland 3.9
France 3.3
Brazil 2.7
Germany 2.5
Japan 2.4
Main Invested Sectors 2009, in %
Energy and metal ore industry 35.6
Finance and insurance industry 20.8
Machinery and transport equipment 9.6
Services and retail 8.2
Logging and paper industry 2.3

Source: OECD statistics

Form of Company Preferred By Foreign Investors
Corporations (private joint-stock companies identified by Ltd or Inc or Co. Public or Private)
Form of Establishment Preferred By Foreign Investors
Main Foreign Companies
General Motor, Ford, Daimler Chrysler, Exxon Mobil (Imperial Oil), Chevron Texaco, ConocoPhillips, Bank of America, Home Depot, Wal Mart.
Sources of Statistics
Statistics Canada

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Why You Should Choose to Invest in Canada

Strong Points
Canada's main advantages are a qualified workforce and an easy access to raw materials. It is one of the most dynamic economies in the world, with a market of 30 million consumers and sophisticated infrastructures, as well as a very modern transportation network.
Weak Points
Canada's weak points are its excessive dependance to the United States and a currently damaged financial system.
Government Measures to Motivate or Restrict FDI
Canada applies a high taxation rate on companies. It is currently the country that applies the lowest payroll taxes in the G7 countries.
Companies establishing their headquarters in Canada should get tax benefits (higher than those offered in the United States) up to 2010 . In addition, the government announced a euro 24.6 billion two-year recovery plan.

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  • Investment Climate in Canada

    Strong economic fundamentals, proximity to the U.S. market, highly skilled employees, and abundant resources are key attractions for Americans investors in Canada.

    Bedjasses on 8 Jan 2010 related to FDI in Canada

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    Egyptian manufacturer for Mattresses, pillows, ..., Canada