Canada’s emergence as a beacon of stability in a world riven by political turmoil is attracting millions in foreign investment, and there could be more to come.
With Donald Trump and Hillary Clinton two of the most unpopular candidates in the history of the US presidential race, plus the UK dropping an economic bomb by voting to leave the European Union, Canada’s stable growth is fast becoming a having for investors.
Data compiled by Bloomberg shows Canada, for the first time since 2010, attracted more US investment in foreign exchange traded funds in the first six months of 2016. Some US$768.1 million was pumped into Canada’s economy via the relevant stream between January and June.
Over the same period, American investors pulled huge amounts of money out of Japan, Germany and China.
Canada looks set to continue to be viewed as a safe destination for investment for the foreseeable future. The US election happens in November, with the uncertainty of investors unlikely to improve until at least the start of 2017.
Trump and Clinton are the two lowest-rated candidates for 70 years. A recent poll recorded a ‘highly unfavourable’ rating of 42 per cent and 33 per cent respectively. A remarkable quarter of Americans dislike both candidates.
Meanwhile, the UK has tentatively begun ‘Brexit’ talks with the EU, but the process could take two years or longer. In the meantime, investors are likely to take a cautious view of the whole European economy, sent into turmoil by the June 23vote.
While turmoil reigns elsewhere, Canada is riding a wave of positivity.
Justin Trudeau has become one of the most recognizable faces in world politics since he was elected as leader of the Liberals in November.
One of his first acts was to begin the process of bringing in 25,000 Syrian refugees. As the US and the UK were beset with a gathering storm of anti-immigration rhetoric, Canada was saying ‘come on in’.
His youthful, striking appearance and political legacy have drawn comparisons with John F. Kennedy and a seemingly natural successor to Barack Obama as the world’s most popular leader.
He is a total contrast to what is being offered south of the border, and experts say this is already attracting capital and will continue to do so.
In a clear indication of positivity towards Canada and negativity towards their home countries, both the Americans and the British have been conducting Google searches for ‘How to move to Canada’ recently. Spikes were recorded on the day of the UK referendum, and when Trump won a swathe of US states during the ‘Super Tuesday’ primaries in May.
Read our guide on how to move to Canada here
This is more an indication of mood than solid evidence people will start moving here. There is a big jump between searching for something and actually doing it, but moving investment money is easier than moving physically, and that appears to be what at least the Americans are starting to do.
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