Canada’s foreign direct investment (FDI) reached $1.5 trillion at the end of 2024, marking a 5.5% increase from the previous year. This growth was mainly driven by mergers and acquisitions, particularly in the manufacturing sector.
Meanwhile, Canadian direct investment abroad surged to $2.47 trillion, a 12% increase from 2023. This growth is the largest since 2019 and highlights Canada’s expanding role in global markets, especially in finance and insurance.
The United States remains the top destination for Canadian investments, with $1.29 trillion invested in the U.S. by the end of 2024. This represents 52.1% of Canada’s total foreign investments. The increase in U.S. investments was driven by sectors like finance, insurance, and management.
Investments in Europe also grew, by $58.6 billion, particularly in the United Kingdom. However, Canadian investments in other regions like Asia and South America were smaller, though they showed positive growth.
Foreign direct investment in Canada increased by $77.8 billion in 2024, bringing the total to $1.5 trillion. The manufacturing sector saw the largest growth, with foreign investments rising by $27 billion. The mining and oil sectors also saw increases, reflecting ongoing interest in Canada’s natural resources.
The services sector, including professional and scientific services, also experienced growth. However, the management of companies and enterprises remained the top sector for foreign investment in Canada.
The United States continued to be the largest source of foreign investment in Canada, with $683.8 billion invested by the end of 2024, accounting for nearly half of all foreign investment in the country. European investments also grew to $507.9 billion, while investments from Asia, particularly Australia, reached $188.4 billion.
Despite an increase in investment from Asia, the U.S. remains the dominant investor in Canada, a trend that has been stable in recent years.