By Erik Hertzberg
(Bloomberg) — Foreign direct investment into Canada fell in the third quarter, reaching the lowest level in a year and a half.
FDI totalled $18.2 billion between July and September, Statistics Canada reported Thursday. That was driven by mergers and acquisitions, and foreign parent companies reinvesting their earnings in Canada.
Net inflows are down from $21.9 billion in the previous quarter, and are the weakest since the start of 2024. The data also show Canadian investment abroad was $25.1 billion, marking a second consecutive period where more net direct investment dollars left than entered the country.
Still, the trend in FDI inflows into Canada remains elevated, totaling $96.6 billion over the last four quarters, well above the $61.9 billion average over the past 10 years.
Canada’s lagging business investment is concerning policy-makers, with the Bank of Canada citing the dearth of outlays as a key reason for the country’s weak productivity.
In his first budget released earlier this month, Prime Minister Mark Carney introduced policies aimed at supporting $500 billion in investment over five years. He also introduced tax deductions aimed at offering favourable treatment for companies investing in machinery, equipment and other technologies.
Statistics Canada also said the country’s current account deficit narrowed to $9.7 billion in the third quarter from a revised $21.6 billion in the previous quarter.
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Last modified: November 28, 2025