Economy / Canada
The top choice for global businesses
From its dynamic startup scene to its well-established industries, Canada stands out as a heavyweight in the global business arena.
Among the G7 countries, Canada has the highest per capita immigration rate.
Canada’s business ecosystem ranks among the most versatile and thriving in the world. The country has emerged as a premier investment destination for global companies, trailing only the US in foreign direct investment (FDI), according to many international rankings.
The right geography, the right economy
Canada boasts a resilient and diversified economy that has weathered numerous global economic downturns. With a robust banking system, controlled inflation, and prudent fiscal management, the environment is conducive to business investment. Consistent GDP growth, a transparent regulatory framework, and some of the most competitive tax advantages globally inspire confidence among investors, positioning Canada as a safe haven amidst global uncertainties.
“Canadians are among the most fortunate people in the world, given our abundant natural resources, the diversity of our population, and the strength of our democracy,” says Perrin Beatty, President and CEO of the Canadian Chamber of Commerce.
Perrin Beatty, President and CEO of the Canadian Chamber of Commerce
Situated between the economic powerhouses of the US and Asia, Canada enjoys a strategic geographical location that facilitates trade and investment opportunities. With access to markets under the USMCA (United States-Mexico-Canada Agreement) and CETA (Comprehensive Economic and Trade Agreement), Canadian businesses benefit from preferential trade agreements that enhance their competitiveness on the global stage.
A culture of innovation
Canada’s reputation as a leader in innovation is well-deserved. The country ranks 15th among 132 economies on the Global Innovation Index 2023 and 16th out of 177 countries on the 2023 Index of Economic Freedom. Home to world-class research institutions, Canada fosters a culture of creativity and collaboration. The country invests significantly in research and development, particularly in key sectors like technology, biotechnology, artificial intelligence, and clean energy. Government initiatives such as the Strategic Innovation Fund and the Scientific Research and Experimental Development Tax Incentive Program incentivize innovation and provide crucial support to businesses at every stage of development.
One of Canada’s most significant assets is its highly skilled and diverse workforce. Its robust education system produces a steady stream of talent equipped with the skills to drive innovation. “Canada is one of the most attractive locations in the world for international students. This is a great advantage because many international students choose to stay,” Beatty underlines. Canada’s immigration policies also attract skilled professionals from around the world. “Among the G7 countries, Canada has the highest per capita immigration rate,” Beatty explains. The Chamber’s CEO also underscores the importance of diversity. “Multiculturalism thrives in Canada. We are one of the very few countries in the world where the public sees immigration as a net benefit.”
Fostering green innovation
Building on its rich natural resources, Canada is focusing on green innovation in emerging clean energy sectors, including battery technologies, carbon capture, and clean hydrogen. The country has secured historic manufacturing deals for electric vehicles, batteries, and hybrids, including a deal with General Motors, which is investing over $2 billion in launching Canada’s first full-scale commercial electric vehicle production facility. “We remain committed to building a Canada that is more modern, diverse, and hopefully more prosperous,” Beatty concludes, underlining the country’s efforts towards a low-carbon future.
