FDI reached $96.8 billion in 2025, up from $91.6 billion in 2024.
In a positive sign for Canada’s economy, foreign direct investment into Canada rose to $96.8 billion in 2025, up from $91.6 billion in 2024. That’s the highest level of FDI into Canada since 2007. As noted by Statistics Canada, the gains were driven by merger and acquisition activities, the trade and transportation sector, management firms, and manufacturing.
Foreign direct investment from the United States and countries other than the United States both grew in 2025. Canadian direct investment abroad dropped to the lowest level since 2020, at $79.4 billion, a large drop compared to $123 billion in 2020. This drop was driven in large part by a decline in Canadian investment into the U.S., which dropped from $65.5 billion in 2024 to $27.6 billion in 2025.
While Canada’s economy continues to face significant challenges – due in no small part to a U.S. Administration that is hostile to free trade – these FDI numbers indicate that Canada can be an attractive destination for investors. With our well-educated population, abundant natural resources, strong global brand, and resilient institutions, combined with a more moderate Prime Minister than in years past, Canada has tremendous potential.
Spencer Fernando
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