Foreign investors taking a shine to Canada

Canada is now the golden child when it comes to world economies.

A new report from CIBC World Markets states there is a growing list of “strategic advantages” which are boosting interest in Canada and its weighting in global investment portfolios.

According to Warren Lovely, government strategist with CIBC’s macro strategy group, Canada’s much smaller need for fiscal adjustments to stabilize debt ratios is playing well with foreign investors and the revenue picture for federal and provincial governments is also “brightening materially” with $15 billion in extra revenue projected for the year.

Some other distinguishing factors that make Canada so attractive are lower corporate taxes, its role as a growth leader among the sluggish developed economies and the well-capitalized banking sector.

Add to that, healthy international and interprovincial migration has created less onerous demographic pressures, which in turn is supporting a faster economic growth rate.

“Canada is increasingly on the lips and minds of international investors,” said Lovely. “Indeed, it’s hard to recall a time when the country possessed such relative, if not absolute, strength.”

The complete CIBC World Markets report is available here.

(07/14/10)