Steady as she goes: Q3 2022 FDI inflows reach $18.7 billion

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Despite economic and geopolitical uncertainty across the globe, foreign direct investment continues to enter Canada at a steady pace. FDI inflows in Q3 2022 reached $18.7 billion, which is 31% greater than the five-year quarterly average and on par with the investment levels from the first two quarters of 2022. 


The picture looks even brighter when you break down some of the numbers. By investment type, Reinvested Earnings contributed the lion’s share of FDI inflows, capturing 72.2% of the total with $13.5 billion, an increase of 18.1% compared to last quarter. By comparison, this category of FDI accounted for 62.5% of FDI inflows in Q1 2022.  

Rising levels of reinvested earnings is good news for Canadians. It signals that global companies are keeping their money in Canada, choosing to reinvest in Canadian communities, and creating jobs and greater prosperity in the process.  


Over 50% of FDI inflows came from four European countries: Switzerland (18.4%), the Netherlands (16.9%), France (8.7%) and Luxembourg (7.5%) together account for over half of FDI inflows for the third quarter of 2022. While the United States’ share of overall FDI fell between Q2 and Q3 of 2022, the U.S. remains the biggest single source of investment in Q3 of 2022, at 37.1%.  

Switzerland and France saw the largest increases in investment in Q3 over their 10-year quarterly averages (+760% and +333% respectively). Investment from France in Q3 was about 17 times its Q2 amount.  


Looking at the sectoral groups as defined by Statistics Canada, Manufacturing ($5.5 billion), Management of Companies and Enterprises ($4.2 billion), and Trade and Transportation ($3.6 billion) received the highest share of FDI inflows this quarter. Investments in Energy and Mining ($2.8 billion), and Finance and Insurance ($1.4 billion) dipped.  


The year 2022 has been marked by more stability in quarterly net inflows compared to 2021. FDI inflow levels in the first two quarters of 2022 (Q1: $18.4 billion; Q2: $16.1 billion) were more balanced than in the first two quarters of 2021 (Q1: $25.8 billion; Q2: $13.1 billion). This quarter’s net inflows of $18.7 billion represent, so far, the strongest quarterly results for this year and a 16.2% increase from Q2 2022.  

By finding the best companies to invest here at home, Invest in Canada aims to build a prosperous and sustainable economy for Canadians. Learn more about FDI in Canada here.