WHY INVEST IN CANADA.
VERY FAVOURABLE ECONOMIC CONDITIONS
• According to the most up-to-date data, compared to major economies in North America and Europe, Canada has among the best debt/GDP ratio, GDP per capita, unemployment rate and GDP growth.
• Canada generally, and Ontario specifically, are very business-friendly: the corporate tax rate (15.5% to 26.5%) is lower than the US or the G7 average.
• There are solid grounds for a positive outlook on the future of Canada: it is still one of the world’s strongest resource economies, and it invests actively in science, innovation and technology thus securing its long-term prosperity.
• Canada has a close relationship with the US and the strengthening US economy further bolsters Canada.
• Unlike many other countries, Canada has fully recovered from the 2008 economic crisis.
RESILIENCE AND REGULATION
• Canada has a stable financial market with strict supervision, and its financial institutions are prudent and risk-averse.
• Canada has less credit default swaps (CDS) and mortgage-backed securities (MBS) exposure as they represent a considerably smaller portion of the banking business in Canada.
• Interestingly, the Canadian government bailout in 2008 was proportionally greater per bank than the US.
FINANCIAL AND CORPORATE CULTURE
• Canada’s corporate culture is cautious and non-litigious.
• Canadians have an exceptionally low residential mortgage delinquency rate (defined as payments three month + in arrears): 0.32% in Canada (0.21% in Ontario) in 2013, compared with 8.21% in the US and 4%+ in Europe (in 2013 and 2009, respectively).
• The CMBS delinquency rate is similar: 0.42% in Canada in 2011 versus 7.43% in the US in 2013.
GOVERNMENT POLICY AND POLITICAL CONDITIONS
• Canada is very stable politically.
• UN studies on criminality show that Canada’s crime rate is 1/3 that of the US, and since the mid 90s it has been falling consistently.
• Studies on public sector corruption show that Canada is among the 10 least corrupt nations in the world.
• Canada supports immigration (which represents a commitment to economic growth) but remains one of the least densely populated countries (most economic development areas are growing).
ADVANTAGEOUS CAD VERSUS EUR, GBP, CHF
• The Canadian dollar is clearly undervalued at present compared to the major European currencies.