Foreign Direct Investment Activity
In 2009, Toronto was named one of the top five destinations for FDI investment according to FDI Markets and FDI Intelligence (
Global Outlook Report 2010: Globalization Continues, Albeit at a Slower Pace).
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 2009, over one-third of all FDI was in the manufacturing sector, followed by the mining/oil/gas extraction sector and finance and insurance sectors.
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
Over 52% of Canada's inward foreign direct investment (FDI) stock, valued at $288.3 billion CDN, is held by investors based in the United States. This figure is down two-thirds from five years ago, whereas that held in the United Kingdom and Asia-Oceania is up 4.9% and 4.6% respectively.
Increasing dramatically in recent years is FDI originating in South America, which has experienced a five-year annual growth rate of 50.4%. This increase is almost entirely attributable to investment from Brazil which holds 96.9% of the region's stock of FDI in Canada. Brazil remains sixth among investors in Canada, ahead of other BRIC (Brazil, Russia, India, China) nations and emerging economies for direct investment in Canada.
In Asia-Oceania, Japan remains the largest regional investor with a 24.9% share of stock, up 2.0% since 2009 and valued at $13.1 billion.
FDI originating in the European Union fell by 1.2% to $163.7 billion. The stock of FDI held in the Netherlands also fell by 5.4% to $46.5 billion, while that of Luxembourg jumped by 41.1% to $9.9 billion. European countries account for six of the top ten sources of FDI in Canada and 34% of Canada's inward stock.
Shares of FDI in Canada in 2009
/Global-Hub/Trade/NAFTAS/Shares-of-FDI-in-Canada-in-2009.aspx
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