According to the 2015 A.T. Kearney Foreign Direct Investment Confidence Index, Canada ranks 4th in the world in terms of investor sentiment, as global business executives report strong confidence in the country’s potential as a Foreign Direct Investment (FDI) destination. Canada is back in the top 4 on the Index for the third year in a row.
The report also reveals that business executives are more optimistic about the Americas, with 35% of executives sharing a more positive outlook on Canada in 2015 than a year ago, second only to the U.S. That means that Canada—and Greater Montréal—are very well positioned to increase their share of FDI over the coming years.
Investor confidence: A major asset for the region
The investor confidence index is a key indicator for globalized national and local economies as it reflects the intentions of the world’s leading corporations to engage in foreign direct investment over the next three years.
This year’s report by A.T. Kearney shows that two thirds of the companies surveyed plan to return to pre-recession FDI levels. The outlook for Greater Montréal in the years ahead is definitely positive, as the region will build on Canada’s excellent reputation, make the most of the anticipated increase in FDI flows, and showcase all it has to offer.
Low costs and preferred access to new markets
Investors’ strong confidence in the Canadian market is not surprising if we look at the facts. Investor confidence in Europe and emerging countries has been declining following the post-recession economic downturn in those regions. What’s more, Canada has the lowest marginal tax rate among G7 countries. In addition, two trade agreements Canada has entered into—the Comprehensive Economic and Trade Agreement, signed with the EU, and the Canada-China Foreign Investment Promotion and Protection Agreement—should help increase investment opportunities between Canada and those two strategic markets.
The future is definitely looking bright for Greater Montréal. The investors surveyed for the 2015 edition of the FDI Confidence Index identify big data and predictive analytics, mobile technology, cloud computing and biotechnology as the biggest FDI opportunities in the coming years. Those are all key sectors of the region’s economy, which means the Montréal International team really has its work cut out for it over the next three years.