The Capital Outflow Story
Foreign direct investment (FDI) into Canada dropped 23 % in 2024, while Canadian investment abroad hit a record $180 billion. Regulatory complexity and energy-project delays remain key deterrents.
| Flow Type | 2023 ($ bn) | 2024 ($ bn) | Change % | Source |
|---|---|---|---|---|
| Inbound FDI to Canada | 69 | 53 | -23 % | IMF World Investment Report 2025 |
| Outbound Canadian FDI | 162 | 180 | +11 % | IMF |
| Avg. Major Project Approval Time | 2.7 yrs | 3.8 yrs | +41 % | NRCan & ISED |
Opportunity Hiding in the Data
Canadian firms are expanding abroad in clean tech, ag-tech, and digital services. This outward push can strengthen global competitiveness if domestic policy accelerates approvals and aligns incentives with U.S. programs.
What Leaders Can Do
- Diversify investment geography. Hedge domestic risk with U.S. and EU ventures.
- Engage policymakers. Participate in regulatory-streamlining consultations.
- Quantify opportunity cost. Include “lost time value” metrics in board FDI reviews.
- Leverage export-finance. Use EDC’s new green-capex guarantees to bridge financing gaps.
Arcus Insight: the investment gap is reversible. Firms demonstrating project-readiness can unlock capital even in slow-moving jurisdictions.