Foreign investment in Canada reached a seven-year low of $33.8 billion in 2017, according to data released by Statistics Canada.
In 2017, foreign investment fell 26.1% from $45.8 billion in 2016. These numbers come days after concerns were raised that the 2018 federal budget did not do enough to address international competitiveness in the wake of Donald Trump’s tax reform.
“The budget has little to no measures meant to make Canadian businesses more competitive on the world stage,” said Iain Black, president and CEO of the Greater Vancouver Board of Trade. “In the face of tax reforms in the U.S. and the layering on of regulations and costs by all levels of government in this country, the Board of Trade remains concerned about the cumulative impacts on business.”
Foreign direct investment in Canada in 2017 was 73.2% lower than its 2007 peak of $126.1 billion and 1,531.6% higher than its 2004 low point of $2.1 billion.
Investments in Canada from abroad have fallen consistently since 2015, dropping 41.6% in 2016 from $78.4 billion in 2015. Foreign direct investment is expected to continue to fall in 2018. According to Tradingeconomics.com, foreign direct investment is expected to fall 14.7% in 2018 to $28.8 billion dollars.
