Canada reaches #2 in A.T. Kearney's Foreign Direct Investment Confidence Index

Canada has moved up three spots to rank second in A.T. Kearney's annual Foreign Direct Investment (FDI) Confidence Index, the highest the country has ever placed. The second place ranking reflects a rise in FDI inflow and investors' optimism towards Canada's economic prospects.

The 2018 A.T. Kearney's Foreign Direct Investment Confidence report compiles data on global markets, investors' focus and top-of-mind governance and market asset factors that impact FDI inflows for the top 25 countries according to FDI intentions.

Canada is an attractive place to invest

With the Americas receiving almost a third of global FDI flows in 2017, investment interest in Canada remains steady. Canada's advanced economy and political stability have proven successful in encouraging new investment from abroad.

Canada's political stability offers a haven for investors

According to authors of the report, results of this year's FDI Confidence Index highlight investors' focus on regulator transparency and corruption, tax rates and ease of payment, and the general security environment. As 79 per cent of investors intend to increase FDI in 2018, they will invest in markets that focus on availability of funds, quality targets and a solid macroeconomic environment. A shift toward developed markets also sidesteps highly anticipated risks including commodity price increases, political instability in emerging markets and an overall increase in geopolitical tensions; all of this making Canada a more attractive FDI option.

Investors are bullish on Canada's economy

Following a three per cent expansion of Canada's economy in 2017, 41 per cent of investors are more confident and optimistic about the country's economy this year, leading to a confidence score of 1.82, which is the second highest rating among the 25 countries ranked by the index. In fact, investors reported greater net confidence for Canada than the United States.

Investors favour pursuit of a business-friendly, global economy

Canada's business-friendly regulations, stable security environment, and continued pursuit of global economic integration through agreements such as the Canada–EU Comprehensive Economic and Trade Agreement and the CPTPP is why the country was the net winner in terms of the share of companies increasing versus decreasing FDI, according to the report.

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July 6, 2018

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