Canada is facing uphill battle to Attract Foreign Direct Investment (FDI)
Source — BMO
Source — https://economics.bmo.com/en/publications/detail/3c619287-7667-4241-bd0b-e60b91f09d0c/
Excellent work by BMO
October 2015 is when Canada moved from Stephen Harper to Justin Trudeau. Canada GDP growth was averaging 2.3% post-2009 recession. https://www.slideshare.net/paulyoungcga/fiscal-management-conservative-party-of-canada-pm-harper
The economy went from 3.0% in 2017 to around 1.6% growth in 2019. Justin Trudeau policies have done little to address areas like FDI or low productivity or lack of innovation or near-shoring critical parts of the supply chain or skills gap or other areas of economic policies. https://www.slideshare.net/paulyoungcga/2019-election-economy-and-gdp-growth-cpc-vs-lpc
Here are key issues that need to be address:
1. Natural gas can play a key role with electricity generation. Canada needs to drive more LNG exports. https://www.linkedin.com/pulse/natural-gas-analysis-commentary-january-2024-paul-young-5acic/
2. Promoting Canada oil sector as being ethical and environmental sound as compare to their peers. https://www.linkedin.com/pulse/analysis-commentary-oil-gas-march-2024-paul-young-c0a0c/
3. Canada needs to focus more on trade, especially expanding trade in areas like natural sources, agriculture, etc. https://www.linkedin.com/pulse/analysis-commentary-canada-trade-january-2024-paul-young-dfxwc/
4. Canada EV policies need to be better align with cost, viability, and availability. https://www.theepochtimes.com/world/why-ottawas-economic-plan-to-excel-in-ev-industry-may-flop-economist-5602055?utm_source=MB_article_free&src_src=MB_article_free&utm_campaign=mb-2024-03-07-ca&src_cmp=mb-2024-03-07-ca&utm_medium=email&est=dfgohu1I9pD2xZMx9rkKS658LkIZ5k6Q%2BlG0CwRai3NBjTSVG1VMD9OYHWJp7uR4YZw6CUcO&utm_term=news4&utm_content=4
5. Canada needs a focus on productivity — Blog — Productivity — Business Investments — Canada — Low FDI — https://www.linkedin.com/posts/paul-young-055632b_investments-in-business-fell-20-over-a-15-activity-7167545083322466305-UgaB?utm_source=share&utm_medium=member_desktop
6. Immigration needs to be better align with skills gap, housing, and overall economic opportunities — https://www.thestar.com/news/canada/immigrating-to-canada-the-system-is-backlogged-and-at-times-unfair-a-new-report-confirms/article_ce6bfec8-6639-54e1-9be8-350ea9b42b94.html
7. FDI challenges — https://santandertrade.com/en/portal/establish-overseas/canada/foreign-investment
8. Addressing skills gap through tax credits and other programs — https://techtalent.ca/fortinet-invests-help-canadas-cybersecurity-skills-shortage/
9. Addressing issues with manufacturing — https://www.canadianmetalworking.com/canadianmetalworking/blog/management/canadas-2024-manufacturing-outlook-appears-bright
10. GDP — https://thedeepdive.ca/canadas-economy-lags-behind-in-gdp-per-capita-growth/
Blog — Productivity — Business Investments — Canada — Low FDI — https://www.linkedin.com/posts/paul-young-055632b_investments-in-business-fell-20-over-a-15-activity-7167545083322466305-UgaB?utm_source=share&utm_medium=member_desktop
Canada is struggling to increase labour productivity amid low business investment, an issue that has been raised frequently by business groups and economists in recent years.
Canadian business investment per worker plummeted by 20 per cent over a 15-year stretch, according to new Statistics Canada research that suggests weaker competition is partly to blame.
The report finds for every worker, businesses invested $628.80 less in their companies in 2021 than they did in 2006.
The decline was more significant in large and medium-sized companies and foreign-controlled businesses, though it’s unclear why that was the case.
The report attributes nearly one-third of the drop to declining entry rates, or the number of new companies starting up by industry.
a) Canada main focus has been on green materials — https://www.mining-technology.com/newsletters/canada-leads-a-sustainable-mining/?type=Analysis&utm_source=&utm_medium=&utm_content=Other_Daily_News_Articles&utm_campaign=type3_mining-market
b) Canada oil and gas sector is one of the most ethical and environmental in the world — https://thoughtleadership.rbc.com/owning-the-climate-podium-10-ways-canada-can-accelerate-investment-in-decarbonization/
c) Canada policies have made Canada less competitive than back on 2015 — https://www.thesuburban.com/news/city_news/canadian-economy-lagging-in-productivity-mei/article_e4b22d0b-fde0-5e2c-9a68-470277893219.html
d) Innovation — https://www.linkedin.com/posts/benrowswell_canadas-innovation-gap-a-warning-sign-for-activity-7161397385993056257-C5W_/
e) Competitiveness — https://thebusinesscouncil.ca/publication/government-should-celebrate-not-attack-canadian-companies-success/
Paul Young CPA is a former IBM Customer Success Manager that has deployed over 300 data and AI solutions across industries and geographies for the past 8 years. Paul is also an ESG SME expert of ESG policy and reporting as part of the operational, management, and regulatory reporting cycles.
Blog — Quarterly Results — Canada — Stats Canada — Financial — https://www.linkedin.com/pulse/quarterly-financial-results-canada-december-2023-paul-young-vvdac/
Blog — Stock Market WE — February 23 2024 — https://www.linkedin.com/pulse/stock-market-we-february-24-2024-paul-young-8niqc/