Foreign investors are hotter about FDI in Canada
A.T. Kearney index moves us up a notch to third place.
WASHINGTON, DC — Guess who’s looking pretty good to foreign investors sitting piles of corporate cash? Canada moves up a spot to third on A.T. Kearney’s 2014 Foreign Direct Investment Confidence Index (FDICI).
It has the third-strongest investor outlook among the 25 countries ranked and it’s high on the list for planned foreign investments in heavy industry, light industry, and non-financial services.
The global management consulting firm says recent R&D centre investments by Samsung, Cisco, and GE Aviation support this trend.
The US maintains its first place position from last year and increases its lead.
A.T. Kearney says the findings bode well for the global economy, noting nearly four out of five respondents are more optimistic than they were a year ago.
Here are some highlights:
• Despite unresolved deficits in the Eurozone, 11 European countries still rank in the top 25, some entering the ranking for the first time.
• 39% of respondents voiced a more positive sentiment than last year for second-ranked China.
• Russia (last year at 11) fell off the top 25 ranking, despite the survey being fielded prior to the current political troubles in Ukraine.
• Asia, which attracts roughly a third of all foreign direct investment, has shown particular resilience, with China at the top as it attracts higher-end manufacturing from overseas.
• Australia and India both experienced a cooling among investors, conversely, Singapore, with its famously predictable regulations and low corporate tax rate, moved up two notches.
• Brazil ranked among the top five most preferred FDI destinations for the fourth consecutive year, incentivized by new industrial policy measures.
• Mexico at 12, is a beneficiary of the wave of US reshoring thanks to its integration with US supply chains.
• Chile’s stable economy and investment climate translated to a five-notch climb in the Index, to 17.
The index’s 300 participating companies represent 26 countries and span all industry sectors. The survey was conducted in January and February.
Click here to access the complete report.