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FDI – Foreign Direct
Investment– Canada – 2015
Trends
By: Paul Young, CPA, CGA
Disclaimer
• This presentation discusses FDI (Foreign Direct Investment)
Paul Young - Presenter
Bio
• CPA/CGA
• 25 years of experience in Academia, Industry and Financial solutions
• Youtube Channel -
https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg
Agenda
• What is FDI?
• Canada stats for 2015
• Top 10 Jurisdictions in North America for FDI
What is FDI
• A foreign direct investment (FDI) is an investment made by a company or entity based in
one country, into a company or entity based in another country. Foreign
direct investments differ substantially from indirect investments such as portfolio flows,
wherein overseas institutions invest in equities listed on a nation's stock exchange.
Entities making direct investments typically have a significant degree of influence and
control over the company into which the investment is made.
• Open economies with skilled workforces and good growth prospects tend to attract larger
amounts of foreign direct investment than closed, highly regulated economies.
Canada / FDI
Key Comments:
FDI-Outboud
• On a sector basis, the finance and insurance
sector was the major contributor to the increase
in Canadian direct investment abroad in 2015,
rising 30.0% to $417.3 billion. This sector
remained the primary destination for Canadian
direct investment abroad, accounting for 41.5%
of the overall position at the end of 2015.
• FDI/Inbound
• Other sectors with notable increases during the
year included management of companies and
enterprises, which was up 20.4% to
$119.3 billion, and manufacturing, which
rose 33.5% to $75.5 billion.
• Major contributors to the overall increase in
foreign direct investment in Canada on a sector
basis were management of companies and
enterprises, up 12.4% to $138.3 billion;
professional, scientific and technical services,
up 101.0% to $22.1 billion; and manufacturing,
up 3.5% to $205.0 billion
2015 Ranking North America
Key Sectors
Ontario
• Clean Technology
• Automotive
• Food Processing
Quebec
• Aerospace
• Food Processing
• Metal Fabrication
• Power Generation
• Clean Technology
FDI / 2016 Outlook• Low commodity Prices
• Periods of low commodity prices will continue
• Key mining sectors (Vanadium, Lithium, Graphite and Rare Metals)
• Automotive Sector
• Jurisdictions fighting for new automotive investment
• Mexico continue to lead expansion of automotive production
• Forestry
• Biomass/Co-generation
• Investment in specialized papers
• Housing Starts
• Aerospace
• Airline replacement fleets
• Government support for Bombardier
• Defense contracts new equipment for Military and Coast Guard (public safety)
• Food/Agriculture Sector
• Trade deals to drive exports of Agricultural related products
• Clean Technology and new technology
• New government investment (Canada) for SDTC and/or other programs to support clean technology
• Internet of Things (IoT)

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FDI - Foreign Direct investment Canada - 2015 trends

  • 1. FDI – Foreign Direct Investment– Canada – 2015 Trends By: Paul Young, CPA, CGA
  • 2. Disclaimer • This presentation discusses FDI (Foreign Direct Investment)
  • 3. Paul Young - Presenter Bio • CPA/CGA • 25 years of experience in Academia, Industry and Financial solutions • Youtube Channel - https://www.youtube.com/channel/UCAArky1bAXPSuV2NLtUnyLg
  • 4. Agenda • What is FDI? • Canada stats for 2015 • Top 10 Jurisdictions in North America for FDI
  • 5. What is FDI • A foreign direct investment (FDI) is an investment made by a company or entity based in one country, into a company or entity based in another country. Foreign direct investments differ substantially from indirect investments such as portfolio flows, wherein overseas institutions invest in equities listed on a nation's stock exchange. Entities making direct investments typically have a significant degree of influence and control over the company into which the investment is made. • Open economies with skilled workforces and good growth prospects tend to attract larger amounts of foreign direct investment than closed, highly regulated economies.
  • 6. Canada / FDI Key Comments: FDI-Outboud • On a sector basis, the finance and insurance sector was the major contributor to the increase in Canadian direct investment abroad in 2015, rising 30.0% to $417.3 billion. This sector remained the primary destination for Canadian direct investment abroad, accounting for 41.5% of the overall position at the end of 2015. • FDI/Inbound • Other sectors with notable increases during the year included management of companies and enterprises, which was up 20.4% to $119.3 billion, and manufacturing, which rose 33.5% to $75.5 billion. • Major contributors to the overall increase in foreign direct investment in Canada on a sector basis were management of companies and enterprises, up 12.4% to $138.3 billion; professional, scientific and technical services, up 101.0% to $22.1 billion; and manufacturing, up 3.5% to $205.0 billion
  • 7. 2015 Ranking North America Key Sectors Ontario • Clean Technology • Automotive • Food Processing Quebec • Aerospace • Food Processing • Metal Fabrication • Power Generation • Clean Technology
  • 8. FDI / 2016 Outlook• Low commodity Prices • Periods of low commodity prices will continue • Key mining sectors (Vanadium, Lithium, Graphite and Rare Metals) • Automotive Sector • Jurisdictions fighting for new automotive investment • Mexico continue to lead expansion of automotive production • Forestry • Biomass/Co-generation • Investment in specialized papers • Housing Starts • Aerospace • Airline replacement fleets • Government support for Bombardier • Defense contracts new equipment for Military and Coast Guard (public safety) • Food/Agriculture Sector • Trade deals to drive exports of Agricultural related products • Clean Technology and new technology • New government investment (Canada) for SDTC and/or other programs to support clean technology • Internet of Things (IoT)

Editor's Notes

  1. 1. Source: http://www.investopedia.com/terms/f/fdi.asp
  2. Source: http://www.investopedia.com/terms/f/fdi.asp United States behind most of the increase in foreign direct investment in Canada The United States was the major contributor to the overall growth in the stock of foreign direct investment in Canada in 2015, as that country's investment position rose 10.5% to $387.7 billion. Other notable gains were recorded for the Netherlands, up 18.7% to $89.1 billion, and Spain, up 362.8% to $10.2 billion. These increases were moderated by declines in the investment position for Switzerland, down 47.4% to $12.3 billion, and the United Kingdom, down 16.8% to $34.3 billion. Growth in Canadian direct investment abroad focused on the finance and insurance, management, and manufacturing sectors On a sector basis, the finance and insurance sector was the major contributor to the increase in Canadian direct investment abroad in 2015, rising 30.0% to $417.3 billion. This sector remained the primary destination for Canadian direct investment abroad, accounting for 41.5% of the overall position at the end of 2015. Other sectors with notable increases during the year included management of companies and enterprises, which was up 20.4% to $119.3 billion, and manufacturing, which rose 33.5% to $75.5 billion. Major contributors to the overall increase in foreign direct investment in Canada on a sector basis were management of companies and enterprises, up 12.4% to $138.3 billion; professional, scientific and technical services, up 101.0% to $22.1 billion; and manufacturing, up 3.5% to $205.0 billion
  3. 1. FDI Intelligence / Report 2015