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Canadian investment in foreign securities amounts to 21.2 bln USD in December

OTTAWA
2021-02-17 04:30

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OTTAWA, Feb. 16 (Xinhua) -- Canadian investors bought an unprecedented 26.9 billion Canadian dollars (about 21.2 billion U.S. dollars) of foreign securities in December 2020, Statistics Canada said Tuesday.

Meanwhile, non-residents added 5.1 billion Canadian dollars of Canadian securities to their holdings, the lowest investment in three months.

December marked an eighth consecutive month of net purchases. Investment activity of the month was nearly all in foreign shares.

As a result, international transactions in securities generated a net outflow of funds of 21.9 billion Canadian dollars from the Canadian economy in December.

Nonetheless, for the whole year, cross-border portfolio investment generated a net inflow of funds in the economy of 87.1 billion Canadian dollars in 2020.

On an annual basis, foreign investors acquired a record amount of 141.1 billion Canadian dollars of Canadian debt securities in 2020.

In 2020, Canadian investors acquired 40 billion Canadian dollars of foreign securities, compared with acquisitions of 8.7 billion Canadian dollars in 2009.

The investment activity resumed strongly following a record divestment of 42 billion Canadian dollars last March when the COVID-19 pandemic intensified and major stock markets posted substantial losses.
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