Canada’s Opportunity in Global Investment Landscape, Says Economist
TORONTO – Canada may be positioned to attract global investors who have traditionally focused on the U.S., according to the chief economist of one of Europe’s major banks.
Isabel Mateo Suillago, from BNP Paribas, noted in a recent interview that investors often prioritize stable returns and predictability. This emphasis might even lead them to overlook the significant profits currently found in the U.S. market.
“Overall, investors everywhere seem quite heavily invested in the U.S. economy, and they’re currently reassessing that strategy. Maybe it’s time to reconsider being so exposed there,” she said.
She went on to suggest that other regions are becoming more appealing to global investors, creating a sort of attractive rivalry. “I think Canada stands out as a prime candidate,” she added.
While in Toronto this week to meet with clients, Mateo Suillago highlighted that recent elections in Canada have helped boost the country’s momentum. Additionally, tackling structural issues like internal trade could further drive growth.
“This is a crucial moment for opportunity. If Canada doesn’t make the most of it, it might be taken by surprise,” she cautioned.
The effects of investors shifting their focus from the U.S. are already visible in Canadian markets. The S&P/TSX Composite index reached a record high this week, indicating positive movement.
Having previously worked as the chief market strategist at BlackRock before her role at BNP, Mateo Suillago mentioned that the U.S.’s dominance in recent years has rendered other markets relatively undervalued, creating potential for investment exploration.
She noted that while Canada benefits from its proximity to the Atlantic, European countries are increasingly looking to Canada for trade diversification. There are inherent geographic challenges, but strong cultural and regulatory links could pave the way for closer ties.
“There are clear synergies here that should simplify trade collaborations compared to other nations,” she claimed.
“I believe this shared interest will lead to fruitful partnerships as both sides look to diversify away from U.S. dependence,” she added.
Canada is already engaged in free trade with Europe, but Mateo Suillago emphasized that there’s potential for even more ambitious initiatives to reduce tariffs and eliminate trade barriers.
Next week, Prime Minister Mark Kearney is set to meet in Alberta with G7 leaders from France, Germany, Italy, the UK, Japan, and the U.S.
Canada’s Role in G7 Discussions
As this year’s G7 chair, Canada has a significant role in maintaining a rules-based global system that benefits many, according to Mateo Suillago.
“Canada is instrumental in advocating for the shared interests of major economies, fostering cooperation, and protecting the existing rules that serve us all,” she mentioned.
She observed that all G7 nations still find common ground on several issues and believes that recent collaboration is a reassuring sign for economic stakeholders.
