A report lists the top 10 source countries of foreign direct investment or FDI in Canada.
The U.S. tops the list with investments totalling $557.7 billion in 2021, accounting for 51.5 percent of the total FDI stock.
Compared to the U.S., the shares of other countries pale in comparison.
For example, the U.K. comes in second with a value of $70.7 billion or 6.5 percent.
Interestingly, Canada is listed at number 5, with $40.6 billion or 3.7 percent of the total FDI stock.
The Canadian share is a result of what the report prepared by Invest Vancouver as “round-tripping”.
Round tripping refers to “funds channeled abroad by resident investors and ultimately returned to the domestic economy in the form of direct investment”.
Invest Vancouver is a service provided through the Invest Vancouver Management Board, a committee of the Metro Vancouver Regional District board.
“As open, globally connected economies, Canada, British Columbia, and the Metro Vancouver region rely on foreign direct investment (FDI) and international trade to drive domestic growth,” states the report written by Chris Heine, a vice president with Invest Vancouver.
Heine’s report is included in the agenda Wednesday (July 20) of the Invest Vancouver Management Board.
Reports about investments in Canada by China almost always generate a lot of attention.
However, Chinese investments accounted for only 3.1 percent of the total FDI stock in 2021.
The value of investments from China totalled $33.8 billion last year.
China and Japan are the only Asian countries that made the top 10 list.
Heine reported that based on official data, annual FDI inflows into Canada totalled $74.8 billion in 2021.
The investments represented the highest level since 2007.
The U.S. was the largest source of FDI in 2021, with $37.6 billion or half of the total.
For more details, see table here from Heine’s report.