Canada ranks second in Kearney’s annual Foreign Direct Investment (FDI) Confidence Index for 2021, a jump from ranking third in 2019. Although business leaders are relatively less confident about the outlook for the global economy in the fallout of the COVID-19 pandemic, they remain highly optimistic towards Canada’s economic prospects, proving Canada’s unrelenting strength in today’s global economy. The 2021 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 remains promising for investors This year, only 57% of investors reported that they are optimistic for the three-year outlook for the global economy—a significant decline from 72% reported before the onset of the pandemic. Despite this, Canada remains a top-three country in the FDI Confidence Index, and investment interest in Canada remains steady. Canada’s advanced economy and political stability continue to encourage new investment from abroad. Investors are optimistic about Canada’s developed markets According to the report, investors focus on the governance and regulatory climate, as well as market assets and infrastructure, when considering a country in which to invest. Due to the pandemic, investors are placing a heavier emphasis on market assets and infrastructure. Research and development (R&D) capabilities break into the top five factors, a significant leap from ranking thirteenth in 2019. Investors continue to prioritize governance and regulations and increase their interest in market assets and infrastructure. Canada remains a promising FDI option due to its high governance and technology scores as well as its low risk of commodity price increases, geopolitical tensions and economic crisis in an emerging market. Investors remain bullish on Canada’s economy Nearly one-third of investors are more confident and optimistic about Canada’s economy this year, leading to a confidence score of 2.10, 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. The post-pandemic global economy Despite the global economic and financial setbacks from the pandemic, investors continue to trust that FDI will drive corporate profitability and competitiveness in the next three years. Given this continued trust from investors, the FDI Confidence Index remains an accurate predictor of a country’s economic prospects, and Canada’s high ranking reflects the continuation of international investments in the country. Register for our newsletter to learn more about why Canada is an attractive destination for FDI.
spotlights2022 Investment RoundupIn 2022, we saw billions in investments in the automotive, advanced manufacturing and life sciences industries in Ontario, Canada.... Press ReleaseCanada’s First All-Electric Vehicle Manufacturing Facility Opens in OntarioWith support from the province, GM Canada has transformed its CAMI manufacturing plant into an all-EV manufacturing facility, the first of its kind in Canada.... Press ReleasePointsBet opens Canadian headquarters in Toronto, OntarioLeading iGaming company, PointsBet, has opened its Canadian headquarters in Toronto, which will serve as a technology innovation hub and home to 50 new jobs.... success storiesWhy India’s L&T Technology Services is engineering solutions in OntarioWhen it decided to nearshore its North American R&D, India’s L&T Technology Services looked for a robust tech ecosystem—and found it in Toronto, Ontario.... success storiesIndian multinational IT giant Zoho expands to Ontario, CanadaMajor Indian IT company Zoho recently expanded into Canada, opening its first office in Cornwall, Ontario.... spotlightsInflation Reduction Act and its impact on Korean automotive investment in OntarioSince supply chain disruptions caused by the pandemic and U.S.–China trade war, Korea has been working with Canada to source core raw materials for EV batteries.... Press ReleaseNokia selects Ottawa, Ontario as their Canadian home for R&D in 5G, artificial intelligence and machine learning, and cybersecurityNokia’s investment in the Ottawa region will lead the way for R&D in telecommunication equipment and infrastructure in Canada.... InterviewAfter years of decline, the auto industry in [Ontario], Canada is making a comebackIn the final installment of his two-outlet mini-series, National Public Radio’s HJ Mai reports on Ontario’s transition towards electric vehicles and building on Canada’s automotive... spotlightsOntario reclaims the title as the best place in Canada to investOntario receives Site Selection Magazine’s Canadian Competitiveness Award for sixth time in seven years.... spotlights14 AI companies to watch in 2022-23AI companies in Ontario are innovating at an astonishing pace across all industries. Their success represents an attractive investment proposition for companies... success storiesLe Boat's tourism expansion flourishes in Ontario, CanadaCanal boating company Le Boat finds exceptional support in navigating its expansion into Ontario, Canada’s advantageous tourism market.... spotlightsWhy skilled workers and global companies are choosing Ontario, CanadaOntario, Canada is excelling at welcoming the best ideas and talent from all over the world....
