Print this Page Bookmark and Share

Foreign Direct Investment Activity

In 2011, Toronto was named one of the top five destinations for FDI investment according to FDI Markets and FDI Intelligence. (The fDi Report 2012).

The two tables below show that Toronto had more new  projects and created more jobs through FDI than either Los Angeles or Chicago and experienced significant growth from the previous year. The report names Toronto and Mississauga as the best performing Canadian cities.

Top Five Destination Cities in NA, 2009

Destination City Total Projects
Note: excludes US interstate data, includes estimates; growth on 2008 figures given in brackets Source: fdi Markets, fdi intelligence
New York 92 (24%)
Toronto 48 (26%)
Los Angeles 37 (19%)
Chicago 32 (7%)
Atlanta 27 (17%)

Destination City New Jobs Created
Note: excludes US interstate data, includes estimates; growth on 2008 figures given in brackets Source: fdi Markets, fdi intelligence
New York 7,832 (33%)
Toronto 6,727 (80%)
Los Angeles 3,743 (-39%)
St John 2,918 (na)
Montreal 2,888 (71%)

Stability and growth potential are just two of the many reasons companies and individuals choose to invest in Canada. Another is the fact that there are no restrictions on the repatriation of capital or profit by foreign investors.

Foreign Direct Investment

There has been significant growth in both inward and outward stock of foreign direct investment (FDI) in Canada over the last 25 years (Statistics Canada, 2010). Between 2004 and 2007, cross-border mergers and acquisitions, strong economic growth and investment in Canada's resource sector resulted in a rapid increase of inbound FDI. In 2011, over one-third of all FDI was in the manufacturing sector, followed by the mining/oil/gas extraction sector and management of companies and enterprises sectors. (Statistics Canada, Report date 2012)

Foreign Direct Investment into Canada by Industry, 2009
/Global-Hub/Trade/NAFTAS/Foreign-Direct-Investment-into-Canada-by-Industry,.aspx

The Geography of Canada's Inward FDI Stock

Direct investment in the Canadian economy from Europe was up 5.7% to $184.2 billion in 2011, while that from the United States rose 2.4% to $326.1 billion. Nevertheless, the share of the United States' direct investment in Canada declined to 53.7% in 2011, resuming a downward trend that began in 2008.

The Netherlands remained the second-largest direct investor in Canada in 2011, a position that it has maintained since 2008. The Netherlands accounted for 9.3% of total direct investment in Canada, followed by the United Kingdom (6.4%), Luxembourg (4.2%) and Switzerland (3.3%).

The share of direct investment in Canada from the Asia and Oceania region more than doubled from 4.5% in 2001 to 11.4% in 2011. This increase can mainly be attributed to China which at the end of 2011 had contributed $10.9 billion in direct investment compared to $219 million 10 years earlier (Statistics Canada, Foreign direct investment, 2011).

Shares of FDI in Canada in 2009
/Global-Hub/Trade/NAFTAS/Shares-of-FDI-in-Canada-in-2009.aspx
FDI in Canada by industry receiving foreign capital.
Direct investment in Canada's economy by foreign countries.
Top of page