James Alexander Michie: Investors ignore the negationism of Morneau | Financial Post
Author: James Alexander Michie
Several foreign investors ignore the denial of the Federal Minister of Finance, Bill Morneau who has rejected the concerns expressed by business managers and economists, who say that a deterioration of the environment for corporate investment in Canada has been established. Although data have been shown that show that the growth of investment has slowed significantly in recent years, Minister Morneau flatly refused to accept the same.
It is well known that national investors are willing and consider it a good idea to invest in their countries of origin, but otherwise foreign investors evaluate in a more balanced way the destinations in which they will make an investment as they are participants in the management of foreign assets that acquire, transform them as more aware when evaluating the actions that could take, therefore the inflows of foreign direct investment have served for investors to know if a country is attractive to do business in it.
It should be noted that this said, helps to understand that it is evident that Canada is not a very attractive destination to do business. Likewise, an important fact to bring up is that Canada has a relatively poor performance when comparing FDI inflows between that nation and several developed nations, given that Canadian FDI inflows averaged around 3.1% since 2015 to 2017.
If a comparison is made between Canada and the United States, the situation is transformed worse and that is that FDI inflows to Canada during the period from 2005 to 2014 averaged 24.2% of US FDI inflows. UU but these had a significant and somewhat dramatic fall, where their fall was only 8.5% from 2015 to 2017.
This raises a series of questions about how this has happened and is that there are various factors that influence the business climate of a nation where both the policies and the federal level are transformed as key players in it. It should be noted that by showing great denial in recognizing the large economic problem that is unfolding and the decrease in investment due to a poor business climate, the Trudeau government and Finance Minister Morneau are failing Canadians.
Take a read: https://business.financialpost.com/opinion/heres-the-evidence-foreign-investors-are-seriously-avoiding-canada-despite-morneaus-denialism
Source: Steven Goberman | Financial Post