Being the second-largest country on the planet, Canada has maintained a majestic stature on the global economic platform. The country has one of the world’s strongest economies, thanks to the Govt policies, skilled Canada Immigration, and openness towards foreign direct investment. The foreign businesses, entrepreneurs, and investors can benefit from Canada’s benefits such as low-interest rates, credit availability, a robust business ecosystem, technological hubs, and an expanding economy.
Many factors make Canada a rewarding destination for all foreign companies, businesses, entrepreneurs, high net-worth individuals, and investors. We will discuss in detail in the following sections:
Canada is a synonym of growth and stability, despite Covid-19
- While COVID-19 has crippled the global economy and many developed countries experience the fiscal deficit now, the Canadian economy has shown resilience in the year 2020. It is expected to rebound to 5.2% growth in 2021.
- According to the Canada-United States-Mexico Agreement (CUSMA), Canada offers access to a market foreign to investors with a joint GDP of more than USD 24 trillion and around 500 million consumers.
- The corporate income tax rate is one of the lowest in the G7 countries at 26.5% per the combined federal-provincial statutory.
- Canada remains the best country in the world for the highest standards of living.
Canada is open for business and foreign investment
- Canada is the No. 1 country in the G20 to start or incorporate a business quickly.
- As per the projections for (2021-2025), Canada will remain the top investment destination among the G20 for running the business. Moreover, the country was among the top 3 countries in the last five years.
- The maple country is also No. 1 in OECD countries for its attractiveness to business people due to the attractive and robust business environment.
- It had the second-largest FDI stock to GDP ratio among G20 countries in the last five years.
Canada exhibit Fiscal soundness and a resilient economy
- To fight the impact of Covid-19 and economic slowdown, Canada took significant and decisive measures to support individuals and businesses. They released an “Economic Response Plan” that helped small, medium, and large companies, extended support to employees, families, increased grants and helped the GDP improve.
- For the last 15 years, Canada enjoyed the lowest net debt to GDP ratio in the G7, with a current rate of around 26%.
- Canada was also affected by the job loss of around 3 million between February and April 2020 due to COVID-19. However, due to the proactive measure and robust economic response plan, Canada successfully recovered the jobs by the end of August, with more than half full-time positions.
- Canada, Australia, and Germany remain the leaders of G20 for fiscal soundness with retaining Triple-A Credit Rating.
Low cost and low tax environment in Canada
- Canada has reduced tax on new business investment from 44.1% in 2000 to 13.7% in 2020 which is considered the lowest in the G7.
- Canadian tax rate in manufacturing, processing (3.1% in Canada vs. 19.5% in the U.S.), and services (17.2% in Canada vs. 24.5% in the U.S.) is lower than in the USA.
- Imports of inputs and machinery for manufacturing are tariff-free.
- Accelerated Investment Incentive program helps the businesses to recover the initial cost of their capital investment.
Canada has an abundant pool of highly educated and competitive workforce
- As per the statistics, Canada has the most educated, skilled workforce in the OECD. Moreover, Indians are highly educated migrants in Canada.
- The country is linguistically diverse, with 1 in every 5 Canadians speaks a minimum of one of more than 200 languages and English or French.
An environment conducive to leading-edge innovation
- Canada tops the list of G20 in the sector of R&D expenditure in higher education as a share of GDP.
- The country offers one of the most substantial R&D tax incentives in the G7. Metropolitans like Toronto, Ottawa, Vancouver, Montréal, and Calgary have immense high-tech talent pool with the lowest-tech cost.
- Toronto takes fourth place in the Tech Talent Market for its talent quality, dynamism, and cost in 2019.
Canada – Great place to live and prosper with one most stable financial sectors
- The banking system is one of the vast countries with the second rank in the G20 and sixth among 141 countries.
- It enjoys being one of the world’s highest standards of living and among the top five OECD countries for its living conditions and quality of life
- The country has the top 6 of the world’s 50 safest and most dependable banks.
- Canada is the most democratic country in the G20, with more power over its citizens and residents.