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Thursday, April 17, 2025

Foreign Investment in Canada Unexpectedly Falls

Foreign Investment in Canada Unexpectedly Falls

In February 2025, foreign investors withdrew a net total of C$6.46 billion from Canadian securities, signaling the first instance of divestment after 11 months of consistent net inflows. This shift stands in contrast to a downwardly adjusted net acquisition of C$7.9 billion in January and significantly misses the market's anticipated inflow of C$12.89 billion. The primary factor behind this decline was a substantial C$21.94 billion divestment in equities, mirroring a broader global retreat from risk assets amid escalating uncertainties surrounding U.S. trade policy and its potential impact on global economic growth. Conversely, debt securities experienced net inflows amounting to C$15.48 billion. Simultaneously, Canadian investors increased their net holdings in foreign securities by C$27.2 billion during the same timeframe.


The material has been provided by - RobotFX

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