April 19, 2012 / 2:23 PM / in 6 years

Foreign direct investment in Canada rose in 2011

TORONTO (Reuters) - Foreign direct investment in Canada increased by 3.8 percent to C$607.5 billion ($614.41 billion) in 2011 from 2010, boosted by interest primarily from the United States and Europe, Statistics Canada said on Thursday.

Direct European investment in Canada rose 5.7 percent to C$184.2 billion, while U.S. investment climbed 2.4 percent to C$326.1 billion. The U.S. share of total direct investment declined to 53.7 percent in 2011, resuming a downward trend that began in the early 2000s.

Manufacturing remained the top industry for direct foreign investment in Canada, representing 31.7 percent of the total in 2011. But this was far lower than a high of 43.5 percent in 2000. The share of the mining, oil and gas industries rose to 19.1 percent last year from 13.6 percent in 2001, the statistics agency said.

Canadian direct investment abroad rose 7 percent to C$684.5 billion, helped by large cross-border transactions in the year, as well as the upward revaluation effect of a weaker Canadian dollar, Statistics Canada said. The Canadian dollar weakened more than 2 percent last year.

In 2011, 51.7 percent of Canadian direct investment abroad was directed to finance, insurance and management industries, up from 38.1 percent in 2001.

Reporting By Jennifer Kwan; Editing by Jeffrey Hodgson

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