Canadian households, businesses, and the government have invested more than $230 billion in US assets.

According to financialpost.com on February 3rd, despite trade tensions with the US, Canada is on track to become a net lender to the US for the ninth consecutive year.

A report by Toronto-Dominion Bank (TD) indicates that in the first three quarters of 2025 (the most recent quarter for which data is available), Canadian households, businesses, and the government invested more than $230 billion in US assets. The total investment for the entire year is projected to reach approximately $255 billion, equivalent to 8% of Canada's nominal Gross Domestic Product (GDP).

This figure is higher than in 2024, but lower than the peaks reached in 2021 and 2023, when capital flows surged to approximately 15.1% of GDP and 12.9% of GDP, respectively.

Meanwhile, U.S. investment in Canada is projected to total around $150 billion this year, equivalent to more than 5% of Canada's GDP – meaning Canada continues to maintain an outflow of capital that is outbalanced with its southern trading partner. However, the different forms of investment suggest different prospects for the long-term cross-border future.

Economist Maria Solovieva, the author of the report, said portfolio investment is the main driver of Canadian capital inflows into the U.S. in 2025. In the first three quarters of 2025, Canadian portfolio investment in U.S. securities reached $200 billion, surpassing the record set in the same period of 2024.

In the first three quarters of 2025, Canadian direct investment in the US reached only $14.3 billion, approximately $31.5 billion less than the same period in 2024. This suggests that the total capital flow for the whole of 2025 may only reach around $19 billion – the lowest level since 2009.

Source: VTV

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