FDI Report 2020 — Global perspective

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Global perspective

Impact of COVID-19 on FDI

Globally, foreign direct investment (FDI) flows fell by 35% in 2020 – dropping to $1 trillion from $1.5 trillion in 2019. FDI to developed economies fell by 58%, while developing countries saw an 8% decrease. While sectors such as manufacturing and natural resources saw the greatest declines, investments in information and communication technologies grew substantially in 2020.

Canada’s COVID experience

All G7 countries saw FDI drops in 2020, with the United Kingdom (–56.6%) and Italy (–102.1%) experiencing the most significant decreases. Canada ranked third in the G7 for 2020 FDI flows behind the United States and Germany. FDI to Canada dropped to $32.3 billion in 2020, a 49.1% decrease over 2019. Over the past 10 years, FDI into Canada has grown an average of 8.1% per year, indicating continued confidence by global companies in Canada as the destination of choice for investors.

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Increase in the number of announced investments in 2020 from countries that do not typically appear in the list of top investor countries to Canada.

+ 0

Singapore
+ 0

Taiwan
+ 0

Norway
+ 0

Poland
+ 0

Chile

Text version

Graphic that shows the increase in the number of announced investments from countries that do not typically rank in the top investor countries to Canada. Source: fDiMarkets and Pitchbook

INVEST IN CANADA INTEL

FDI and Canada’s recovery

Canada navigated the challenges of the pandemic better than many other developed countries. Looking forward, partnerships with organizations from around the world will attract investments that create jobs, boost productivity and play an instrumental role in Canada’s economic recovery. FDI will help prepare Canada for future challenges.