17 Fantastic Foreign Investment in Canada Statistics

When it comes to foreign investment, Canada is a highly appealing option thanks to its favourable taxation system, welcoming immigration policy, and stable currency, among other things.

So, do you want to know which countries invest the most in Canada? Or are you interested in finding out something about foreign investment in general?

If that’s the case, you’ve come to the right place.

Let’s take a deep dive into the latest foreign investment in Canada statistics you shouldn’t miss!

Breathtaking Foreign Investment in Canada Stats (Editor’s Choice)

• In 2019, the most significant foreign investment in Canada was in energy and mining at $19.4 billion.
• At the end of 2020, the US, UK, and Luxemburg represented 60.5% of Canada’s total direct investment abroad.
• In March 2021, foreign direct investment in Canada increased by US$15.5 billion.
• At the end of 2020, the stock of Canada’s direct investment abroad reached $1,469.3 billion.
• The largest ten-year average historical growth by industry was in finance and insurance, at 750.5%.
• Foreign enterprises in Canada employ 12% of Canadian workers.
• At the end of 2020, 60.5% of total Canadian direct investment abroad went to the US, the UK, and Luxemburg.

Foreign Direct Investment in Canada Statistics

1. In 2020, the stock of FDI in Canada reached $1,046.3 billion.

(Source: 150 Stat Can)

This represented an increase of 2.7%. The main investor countries were the US, the Netherlands, and the United Kingdom. Whereas the considerably higher growth in 2019 (7.7%) was due to the higher cross-border mergers and acquisitions, investment activity plummeted in 2020 both in Canada and globally due to the Coronavirus pandemic.

2. Canada’s foreign direct investment increased by US$15.5 billion in Mar 2021.

(Source: CEICData)

According to the foreign investment in Canada statistics for 2021, the FDI in the country increased by $15.5 billion in March 2021. This was far higher than the increase of US$3.7 billion in the previous quarter. The all-time high of foreign investment in Canada of US$51 billion was in December 2007, and the record low was -$6.4 billion in June 2004.

3. In 2019, the greatest foreign investment in Canada was made in energy and mining, at $19.4 billion.

(Source: Invest Canada)

The other industries that dominated in foreign investment in Canada that year were manufacturing ($18.2 billion), management of companies and enterprises ($9.4 billion), finance and insurance ($9.1 billion), other ($8.3 billion), and trade and transportation ($2.6 billion).

4. In 2020, the most considerable growth was in the technical, professional, and scientific services industry, at $12.8 billion.

(Source: 150 Stat Can)

Even though in 2019, the greatest foreign investment in Canada was made in energy and mining, we see a completely different scenario in foreign investment in Canada in 2020. That year, energy and mining had the largest decrease (-$11.4 billion) caused by the COVID-19 pandemic.

At the same time, the largest growth was in the technical, professional, and scientific services industry (+$12.8 billion), followed by wholesale trade (+$6.6 billion).

5. The highest ten-year average historical growth by industry in 2019-2019 was in finance and insurance, at a mind-blowing 750.5%.

(Source: Invest Canada)

Additionally, the management of companies and enterprise investment growth was about 478.3%, while trade and transportation investment growth was 120.8%. Next, manufacturing investment growth was about 86.2%, energy and mining 58%, and other industries 48.7%.

6. In 2019, foreign investment in Canada exceeded the ten-year average growth rate.

(Source: Invest Canada)

The ten-year average foreign investment growth in Canada was about 14%, while the growth in 2018-2019 amounted to 19.3%. Clearly, the benefits of foreign investment in Canada are plenty, and growth is evident at a quicker pace than in previous years.

7. The US invested $455.07 billion in Canada in 2019.

(Source: Statista)

It should come as no surprise that the US is the primary foreign investor in the country. With 46%, North America accounts for almost half of the foreign direct investment in Canada. American investment in Canada in 2019 amounted to an astonishing $455.07 billion.

Who’s next?

After North America, 25% of the share comes from Europe. The highest European FDI in Canada in 2019 came from the Netherlands ($123.86 billion).

8. With $20.4 billion, Europe led the growth in the stock of foreign direct investment in Canada in 2020.

(Source: 150 Stat Can)

According to foreign investment in Canada statistics, the share of FDI from Europe has been steadily growing throughout the years. So, it reached an impressive 40.0% at the end of 2020. The increase was due to mergers and acquisition activities.

9. In 2019, the total Chinese investment in Canada was $3.1 billion.

(Source: National Post)

This estimate is based on data from the University of Alberta’s China Institute. However, the amount is well below the previous five-year average of roughly $5 billion per year. As a result, the total Chinese investment in the Great White North between 2016 – 2019 was $21 billion, down from $27 billion between 2012 – 2016.

More Stats & Facts on Canada Investment

10. The average ranking of the presented investment firms in Canada amounted to 666 points out of 1,000 in 2020.

(Source: Statista)

The statistics about the top 10 investment companies in Canada show that
Assante had the highest investor satisfaction of the leading Canadian full-service investment firms (714 points). The second one on the list was the National Bank with 696 points, followed by the iA Securities/HollisWealth and RBC Dominion Securities with 690.

11. Foreign enterprises in Canada employ 12% of Canadian workers.

(Source: Site Selection)

Altogether, around two million Canadians work for a foreign-controlled multinational enterprise in Canada. This figure amounts to almost one in eight Canadian jobs or 12% of the Canadian workforce.

12.Ontario attracted 20% more projects in 2018 than in 2017.

(Source: Invest Ontario)

Ontario is the top Canadian province, and it holds the third position in North America for foreign direct investment. In fact, the province has 7% of the market share of all foreign direct investment projects in Canada.

Key takeaway:

Currently, Ontario is the best place to invest in Canada.

13. Around 165 cities in Canada have received investment from the Asia-Pacific region between 2003 and 2018.

(Source: Investment Monitor)

The Asia-Pacific region has focused its investment primarily on four provinces in Canada – Ontario, Alberta, British Columbia, and Quebec. All of these provinces attracted different types of business investment in Canada.

Here’s the deal:

British Columbia and Alberta attracted more energy-related investments. In contrast, Ontario attracted automobile and electricity investments, while Quebec attracted mining investments.

Canada’s other territories and provinces have seen little investment, and that was mainly in gas and oil producers. According to stats on foreign direct investment in Canada by province, Toronto, Vancouver, and Calgary brought in over 40% of the total number of deals between 2003 and 2018.

Examples of Foreign Direct Investment in Canada

14. Sanofi has committed to invest $79 million annually in research and development in Ontario.

(Source: Invest Ontario)

On March 31, 2021, Sanofi, a leading global biopharmaceutical and vaccines company, announced the expansion of direct foreign investment into an Ontario facility. The investment aims to meet the demands for flu vaccines and help Canada prepare for future pandemics.

So, Sanofi created 300 high-quality Canadian jobs. The partnership between Sanofi and the Canadian government will boost Ontario’s life science ecosystem.

15. According to foreign investment statistics in Canada, the country ranks second in Kearney’s annual Foreign Direct Investment (FDI) Confidence Index for 2021.

(Source: Invest Ontario)

Prior to the COVID-19 pandemic, about 72% of investors said they would invest in Canada and had a positive outlook on its investment terms. However, during the pandemic, the percentage fell to about 57%. Even so, investors rank Canada second in the list of the best countries for Foreign Direct Investments.

Canadian Direct Investment Abroad

16. At the end of 2020, the stock of Canada’s direct investment abroad reached $1,469.3 billion.

(Source: 150 Stat Can)

As we mentioned earlier, foreign direct investment slowed considerably in Canada and globally amid the disruption caused by the COVID-19 pandemic. However, the stock of both foreign direct investment in Canada and Canada’s direct investment abroad continued to increase. At the end of 2020, the stock of Canadian foreign investment abroad increased by 4.2%, while the stock of foreign investment was up 2.7%.

17. At the end of 2020, the US, the UK, and Luxemburg represented 60.5% of Canada’s total direct investment abroad.

(Source: 150 Stat Can)

The majority of the direct investment abroad was directed to three countries. The larger proportion of investment in the US was in the finance and insurance industry, followed by warehousing and transportation. The larger proportion of the investment in the UK was also in the finance and investment industry, as well as the information and cultural industries.

Wrap Up

As one of the largest economies in the world, Canada offers countless opportunities for three types of foreign direct investment – Horizontal FDI, Platform FDI, and Vertical FDI. In addition, there are various assistance programs with many incentives, tax deductions, and refunds.

In the current hectic situation, it can be difficult to avoid risks and seize opportunities but in order. However, global companies need to find the balance in the chaos to succeed and grow.

Foreign Investment in Canada statistics are clear:

The Great White North offers just that, which makes it the perfect place for foreign investment.