Canada’s economy is coming back strong in 2021 after the severe global downturn due to the COVID-19 pandemic. GDP grew by 20% between April 2020 and April 2021, and the OECD has upgraded its economic forecast for GDP growth to 5% this year. Inward foreign direct investment in the first quarter of 2021 was 87% higher than the 10-year quarterly average. What’s more, Kearney’s FDI Confidence Index again ranks Canada the second-most attractive investment destination in the world.
Clearly, Canada offers global investors numerous advantages — including business and political stability, top talent, ecosystems that foster innovation, and unmatched market access —t hat present Canada as a strong and stable economy for investment.
Canada’s response during the pandemic has been to continue actively encouraging trade flows through 14 trade agreements that give companies located in Canada unfettered access to 51 countries, including the United States, with whom US$1.7 billion of cross-border trade occurs every day.
Canada has also taken necessary steps to secure stronger supply chains in key sectors such as agribusiness, through an integrated and secure farm-to-fork food system exceptionally well-oriented to exports.
Another high-opportunity sector for Canada is cleantech — described as any product, service, or process that reduces environmental effects. Canada is fortunate to have an abundance of both renewable and non-renewable energy resources to form the basis for cleantech innovation. Through firm government commitments to fight climate change, businesses located in Canada are in a good position to flourish in cleantech.
One cleantech industry with great potential for investment in Canada is the electric vehicle (EV) battery supply chain. Canada is the only country in the Western Hemisphere able to manufacture electric vehicles from start to finish, including critical minerals required for EV batteries. Canada offers both proximity and free-trade access to automotive assembly plants, with five in Ontario and over 30 in the U.S. within a day’s drive.
Global companies can unlock these investment opportunities in Canada through Invest in Canada, Canada’s national investment attraction and promotion agency. Invest in Canada offers customized services that facilitate and accelerate foreign direct investment into Canada.
If you are interested in establishing or expanding your company in Canada, please contact our team at Invest in Canada.
Invest in Canada