In past recessions, Canada has consistently been a competitive and reliable investment destination for foreign investors. Canada not only rebounded immediately after the end of the 1990-1992 recession and the 2008-2009 financial crisis with positive growth in annual foreign direct investment (FDI) inflows, it was the only G7 country to display continuous growth in the aftermath of both economic downturns.
Examining Canada’s FDI and economic recovery from historical crises reveals that Canada is well-positioned for recovery from COVID-19. Why? Let’s take a deeper look.
Economic Recovery Efforts in Canada
As Ian McKay, CEO of Invest in Canada, highlighted in a recent blog post, there is a perspective in the trade and investment community that Canada’s current response to the pandemic has been one of the most effective in the world. To compare, Canada’s stimulus package for COVID-19 is a lot bigger (9.8% of GDP) than the Economic Action Plan (EAP) for the 2008-2009 financial crisis (3.9% of GDP). Nevertheless, we can learn a lot about the potential COVID-19 recovery path by observing the past.Read More