Foreign direct investment, 2024
Released: 2025-04-30
The stock of Canadian direct investment abroad rose by $264.8 billion (+12.0%) to reach $2,473.5 billion at the end of 2024. Transactions—mainly in the form of earnings reinvested by Canadian direct investors in their existing foreign affiliates and mergers and acquisitions—and valuation gains from a weaker Canadian dollar all contributed to the increase.
Meanwhile, the stock of foreign direct investment in Canada increased by $77.8 billion (+5.5%) to $1,502.5 billion in 2024. Merger and acquisition transactions contributed the most to this increase.
As a result, Canada's net direct investment position—the difference between the stock of direct investment abroad and in Canada—grew by $187.0 billion to $971.0 billion by 2024 year end.
Chart 1
Canada's foreign direct investment position
Canadian direct investment abroad increases significantly
The stock of Canadian direct investment abroad amounted to $2,473.5 billion at the end of 2024, an increase of 12.0% from 2023 and the largest percentage increase since 2019. The three sectors that mainly contributed to the increase at the end of 2024 were finance and insurance (+$88.2 billion to $805.9 billion), management of companies and enterprises (+$61.4 billion to $539.3 billion) and mining, quarrying, and oil and gas extraction (+$10.3 billion to $242.9 billion). These sectors also accounted for over two-thirds of Canada's total outward direct investment position at the end of the year. Other sectors, such as agriculture and accommodation and food services, saw their position decline when compared with the previous year.
On a geographical basis, Canadian direct investment in the United States reached $1,289.3 billion at the end of 2024, up $172.0 billion from 2023 and representing more than half (52.1%) of total Canadian holdings abroad. Meanwhile, Canadian direct investment in Europe rose by $58.6 billion to reach $485.5 billion at the end of 2024, led by increased investment in the United Kingdom. Investment in Europe represented about one-fifth (19.6%) of Canada's total outward direct investment position. At the end of 2024, Canadian direct investment amounted to $384.2 billion in the Caribbean, $164.2 billion in Asia/Oceania and $91.1 billion in South and Central America.
Foreign direct investment in Canada increases the most in the manufacturing sector
The stock of foreign direct investment in Canada reached $1,502.5 billion at the end of 2024, an increase of $77.8 billion (+5.5%) from 2023. The stock of investment in goods-producing industries increased by $44.2 billion to reach $453.9 billion at the end of 2024, while the stock in services-producing industries grew by $33.6 billion to $1,050.0 billion.
In goods-producing industries, the manufacturing sector increased $27.0 billion to reach $250.8 billion at the end of 2024, followed by the mining, quarrying, and oil and gas extraction sector (+$15.5 billion to $172.8 billion). These two sectors led the growth in goods-producing industries.
In services-producing industries, the professional, scientific and technical services sector (+$7.8 billion to $55.5 billion) had the largest growth at the end of 2024. However, the management of companies and enterprises sector—often large corporate groups that receive foreign direct investment and are involved in a variety of activities in the country—remained the most important contributor ($479.8 billion) to foreign direct investment in Canada at the end of 2024.
On a geographical basis, foreign direct investment in Canada from the United States increased by $45.0 billion to $683.8 billion at the end of 2024. This represented close to half (45.5%) of all foreign direct investment stock in Canada. Holdings from Europe (+$13.8 billion to $507.9 billion) were also up, representing about one-third (33.8%) of total inward direct investment. Lastly, investment from Asia/Oceania increased by $18.9 billion to reach $188.4 billion. Australia was the largest holder in this region at year end.
Foreign direct investment in Canada on an ultimate investor country basis
The standard presentation of foreign direct investment is on an immediate investor country basis, meaning the last country through which the investment transited before entering the domestic economy. Foreign direct investment can also be measured on an ultimate investor country basis, by looking beyond the immediate investor country to show the country that ultimately controls an investment.
At the end of 2024, foreign direct investment in Canada from Europe represented 22.5% of the total foreign direct investment on an ultimate investor country basis, compared with 33.8% on an immediate investor country basis. European countries with lower investment values on an ultimate investor country basis included the Netherlands, Luxembourg and Switzerland, while countries such as France and Germany posted higher values.
Outside of Europe, the United States, Japan, China and Brazil are countries that posted higher investment positions at the end of 2024 when the data were presented by ultimate investor country.
Chart 2
Foreign direct investment in Canada by select ultimate and immediate investor country, 2024
Measuring Canadian direct investment abroad on an ultimate investor country basis identifies the country that ultimately controls Canadian investments abroad. In 2024, Canadian investors ultimately controlled 92.8% of Canada's direct investment abroad. Investors from over 30 countries ultimately controlled the remaining 7.2%; of that proportion, the United States (4.6%) was the most important contributor.
Wholesalers mainly invest in a different industry than their own when investing abroad
Overall, half (50.2%) of Canadian direct investors' holdings abroad were in foreign affiliates operating in a different industry than their own at the end of 2024. Canadian direct investors in the wholesale trade industry had the highest proportion of foreign holdings in a different industry than their own (87.5%).
In comparison, Canadian direct investors from the finance and insurance sector, the transportation and warehousing sector and the mining, quarrying, and oil and gas extraction sector held most of their direct investments abroad in their own sector.
Chart 3
Canadian direct investment abroad, by select industries of the Canadian direct investor, 2024
Focus on Canada and the United States
Foreign direct investment involves cross-border investment in which an entity in one country (the direct investor) obtains a lasting interest (at least 10% of the voting equity) in an entity in another country (the direct investment enterprise). The lasting interest implies the existence of a long-term relationship between the direct investor and the direct investment enterprise and a significant degree of influence by the direct investor on the management of the direct investment enterprise. As it facilitates access to new markets, resources and know-how, foreign direct investment provides growth opportunities and economic output in the host economy.
The stock of Canadian direct investment in the United States totalled $1,289.3 billion at the end of 2024. More than three-quarters of the direct investment stock in the United States was in five main sectors: finance and insurance ($443.5 billion), management of companies and enterprises ($264.3 billion), transportation and warehousing ($155.8 billion), manufacturing ($80.7 billion) and mining, quarrying, and oil and gas extraction ($70.3 billion).
Meanwhile, the stock of foreign direct investment in Canada from the United States was $683.8 billion at the end of 2024. These five sectors were the main recipients of direct investment from the United States: management of companies and enterprises ($244.6 billion), finance and insurance ($111.5 billion), manufacturing ($97.0 billion), mining, quarrying, and oil and gas extraction ($69.6 billion) and wholesale trade ($52.8 billion). All other sectors combined represented a little more than 15% of the total stock.
The share of Canadian direct investment in the United States increased from 44.2% to 52.1% of the total outward investment position in the past 20 years. Meanwhile, the share of foreign direct investment in Canada from the United States decreased from 64.1% to 45.5% of the total inward investment position over the same period, but it has been stable since 2019.
For more data and insights on areas touched by the socio-economic relationship between Canada and the United States, see the Focus on Canada and the United States webpage.
Chart 4
Canada's foreign direct investment position with the United States
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Note to readers
This is the annual release of detailed foreign direct investment position data at book value. This release contains country and industry details that are drawn from annual surveys and administrative sources. This detailed information is not available at the time of quarterly international investment position releases. However, aggregates of direct investment positions, both at book and market values, are available as part of the quarterly international investment position release.
Year-end position data for 2024 are projected using the latest benchmark survey data of 2023 and flows collected from the 2024 quarterly surveys. In addition, outstanding positions denominated in foreign currencies are re-evaluated to account for changes in exchange rates. These estimates will be revised next year with the integration of benchmark survey and administrative data for the reference year 2024 and will fully reflect the change in the stock of foreign direct investment from one year to the next, including volume changes such as debt or equity write-offs.
Direct investment is a component of the international investment position that refers to the investment of an entity in one country (the direct investor) obtaining a lasting interest in an entity in another country (the direct investment enterprise). The lasting interest implies the existence of a long-term relationship between the direct investor and the direct investment enterprise and a significant degree of influence by the direct investor on the management of the direct investment enterprise.
In practice, direct investment is deemed to occur when a direct investor owns at least 10% of the voting equity in a direct investment enterprise. This release presents the cumulative year-end positions for direct investment, measured as the total value of equity and the net value of debt instruments between direct investors and their direct investment enterprises.
Foreign direct investment by country and by industry
Following international standards, the main measure of direct investment is based on the country of residence of the direct investor (immediate parent company) for foreign direct investment in Canada and on the country of residence of the direct investment enterprise (the immediate subsidiary) for Canadian direct investment abroad. This implies that direct investment is largely attributed to the first investor or investee country, rather than the ultimate investor or investee country. Direct investment data on an immediate investor basis are available in tables 36-10-0008-01, 36-10-0009-01, 36-10-0657-01 and 36-10-0659-01.
Foreign direct investment by ultimate investor
A supplementary series on foreign direct investment by ultimate investor is available in table 36-10-0433-01. This series differs from the standard presentation of foreign direct investment, which is based on the country of residence of the immediate direct investor, by showing the country of the investor that ultimately controls the investment. Because foreign direct investment may be channelled through holding companies or other legal entities in intermediate countries, the measurement of foreign direct investment on an ultimate investor basis can result in substantial changes in the distribution of positions by country when compared with foreign direct investment measured on an immediate investor basis.
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