Canada Ranked Second Most Trustworthy Country for Investment 2026

Canada second most trustworthy country for investment: Canada has been ranked the world’s second most trustworthy country for investment in 2026, according to the newly released Kearney Foreign Direct Investment (FDI) Confidence Index, one of the most closely watched global surveys of corporate investment sentiment. The finding places Canada behind only the United States and ahead of Japan, China, Germany and the United Kingdom, confirming a trend that has now held steady for four straight years. For a country that competes daily with the world’s largest economy for capital, jobs and corporate headquarters, holding onto the number two spot in a year marked by tariff wars, AI-driven capital shifts and rising geopolitical tension is being read by economists as a meaningful vote of confidence.

The 2026 Kearney FDI Confidence Index is based on a survey of 507 senior executives from companies with annual revenues above $500 million, headquartered across 29 markets worldwide, conducted in January 2026. What makes this ranking different from ordinary FDI inflow data is that it is forward-looking: it measures where global business leaders say they intend to invest over the next three years, not just where money has already gone. Since the index began in 1998, its rankings have historically tracked closely with real investment flows in the years that followed, which is why a jump or slip in position tends to draw serious attention from trade officials, provincial governments and corporate boardrooms alike. We’ll be updating this article monthly as new investment data, federal budget commitments and provincial FDI announcements are released.

Quick Summary: Canada’s 2026 Investment Ranking at a Glance

What Happened: The Latest Update on Canada’s Investment Standing

The headline finding is straightforward: Canada ranked second in the Kearney index for a fourth consecutive year, but the story behind that ranking has shifted meaningfully compared to previous editions. For the first time in the survey’s history, technological innovation has overtaken traditional factors like regulatory efficiency and raw economic growth as the single biggest driver of where global executives want to put their money. Kearney’s analysts tied this shift directly to the worldwide boom in artificial intelligence and data-centre construction, noting that global investment in data centres alone topped an estimated $270 billion in 2025.

Canada appears to be benefiting from that pivot. The federal government’s proposed $926 million budget for sovereign AI infrastructure, combined with a record 297 foreign direct investment announcements in the first half of 2025, gave executives concrete reasons to keep Canada near the top of their list. At the same time, the United States retained first place for the 14th year running, but its overall confidence score actually fell, a decline Kearney’s report attributes to political uncertainty and ongoing tariff disputes rather than any single policy failure.

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Why Canada Climbed While China Slipped

One of the more striking long-term trends in the 2026 index is the reversal between Canada and China. A decade ago, in the 2016 edition of the same survey, China held the number two spot worldwide. By 2026, China had fallen to fourth place, a drop analysts link to sustained geopolitical friction and investor caution around regulatory unpredictability. Canada, meanwhile, climbed steadily upward over the same ten-year stretch, while Japan rose from sixth to third place, and Saudi Arabia broke into the global top 10 for the first time, reflecting the kingdom’s aggressive push to diversify away from oil revenue and attract an estimated $100 billion a year in FDI by 2030.

For Canada specifically, the top five drivers cited by surveyed executives, according to Global Affairs Canada’s own analysis of the Kearney data, were:

• Technological innovation (cited by 28% of respondents)
• Natural resources (28%)
• Transparent governance (25%)
• Infrastructure quality (25%)
• Economic performance (25%)

The Economic Fundamentals Backing Up the Ranking

A survey ranking is only as credible as the fundamentals underneath it, and Canada’s underlying economic data gives the Kearney result some real weight. According to Global Affairs Canada and IMF figures published in 2026, Canada has held the lowest net debt-to-GDP ratio in the G7 for 20 consecutive years, sitting at just 10.2% in 2025. Canada also recorded the highest FDI inflows per capita in the G7 in 2025 and the second-highest FDI outflows per capita among G7 economies, according to combined IMF and OECD figures.

On taxation, Canada’s 26.0% statutory corporate income tax rate sits comfortably within the G7 range of 25.0% to 36.1%, and the country holds the lowest marginal effective tax rate (METR) on new business investment among G7 peers. Trade access is another frequently cited pillar: Canada currently has 15 active free trade agreements covering 51 countries, giving businesses preferential access to markets representing close to US$72 trillion in combined GDP, or roughly 61% of the global economy. Through the Canada-United States-Mexico Agreement (CUSMA), Canadian-based investors also get preferential access to a market of over US$30 trillion in GDP and 500 million consumers.

A Separate, Even Stronger Signal: Canada Tops Infrastructure Investment Rankings

While the Kearney index measures general foreign direct investment confidence, a second and distinct survey released in May 2026 by the Global Infrastructure Investor Association (GIIA) delivered an even more striking result: Canada was ranked the world’s most attractive market for infrastructure investment, surpassing both Germany (which moved into second place) and, notably, the United States, which fell to third. This marks the first time Canada has ever overtaken the US in this particular ranking. GIIA’s poll cited Prime Minister Mark Carney’s “Nation Building” program and a series of federal commitments to expand core infrastructure as the primary reasons behind the jump. It is important for readers to note that this GIIA infrastructure ranking is a separate survey with a different methodology from the broader Kearney FDI Confidence Index, even though both point in the same direction for Canada in 2026.

What This Means for Investors, Businesses and Canadian Workers

For international corporations weighing where to expand next, a sustained top-two ranking signals lower perceived risk relative to dozens of competing economies. For Canadian provinces and cities, it strengthens the case for continued federal spending on AI infrastructure, clean energy, and manufacturing incentives such as the full first-year tax deduction on machinery, equipment and clean energy investments introduced under the Accelerated Investment Incentive. For everyday Canadians, higher sustained FDI confidence is generally associated with more corporate expansion, more hiring, and greater public investment in infrastructure projects tied to programs like Nation Building.

It’s worth noting one structural shift happening alongside this ranking: the federal government paused the Start-Up Visa Program to new applicants effective January 1, 2026, and is reportedly developing a replacement entrepreneur immigration stream focused more heavily on high-impact investment and innovation-driven ventures, rather than volume of applications.

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Official Sources and Verification Links

FAQs Canada Ranked Second Most Trustworthy Country for Investment 2026

People Also Ask

Is Canada a good country to invest in right now? Based on the 2026 Kearney ranking and Canada’s G7-leading debt-to-GDP ratio, competitive corporate tax rate and expanding free trade network, Canada continues to be viewed by global executives as one of the world’s most stable and attractive investment destinations.

Why did China’s investment ranking fall? China dropped from second to fourth place in the Kearney index between 2016 and 2026, a decline analysts attribute mainly to sustained geopolitical tensions and shifting investor sentiment around regulatory predictability.

What industries are attracting the most foreign investment in Canada in 2026? Natural resources, artificial intelligence and data-centre infrastructure, and manufacturing tied to clean energy incentives are among the sectors most frequently cited by surveyed executives as reasons to invest in Canada.

Is the Start-Up Visa Program still open in Canada? No. The federal government paused new applications to the Start-Up Visa Program effective January 1, 2026, while it develops a replacement stream focused on high-impact investment and innovation.

Conclusion

Canada’s return to second place in the 2026 Kearney FDI Confidence Index, paired with a separate first-place finish in the GIIA’s infrastructure investment survey, paints a consistent picture: global business leaders continue to view Canada as one of the safest and most promising places to deploy long-term capital, even as traditional rivals like China lose ground and the top-ranked United States faces growing investor caution of its own. Whether this confidence converts into new factories, expanded data centres or fresh hiring across Canadian provinces will depend on how quickly federal and provincial governments can turn survey optimism into signed deals. We’ll be updating this article monthly as new FDI figures, federal budget announcements and updated global rankings are released.

What Is the Kearney FDI Confidence Index?

Before diving into Canada’s achievement, it’s worth understanding what this ranking actually measures. The Kearney FDI Confidence Index is an annual global survey of senior business executives that measures which countries investors are most likely to target for foreign direct investment over the next three years.

This isn’t a survey based on tourism appeal or general reputation it’s a hard look at where the world’s biggest corporations plan to put their money. The 2026 edition surveyed more than 500 executives from major international corporations, making it one of the most respected benchmarks for global investment confidence.

Why Canada Ranked Second?

Several factors converged to push Canada into the number two spot worldwide. According to the report, Canada ranked second because investors continue to view it as politically stable, economically reliable, and technologically innovative.

1. Political Stability and Strong Institutions

In a world where geopolitical uncertainty has become the norm, political stability has become one of the most valuable currencies for investors. The report highlighted Canada’s natural resources, AI investments, infrastructure spending, and strong institutions as major strengths that attract foreign direct investment.

2. The AI and Technology Boom

Perhaps the most significant shift in this year’s rankings is the growing dominance of technology as a deciding factor for investors. For the first time, technological and innovation capabilities ranked as the most important factor for foreign direct investment decisions, pushing traditional considerations such as economic performance and regulatory efficiency slightly lower.

This shift is directly tied to the explosive growth of artificial intelligence infrastructure worldwide. Foreign investment in data centres exceeded an estimated $270 billion globally in 2025, and countries with strong innovation ecosystems are increasingly viewed as the safest long-term investment destinations.

Canada’s positioning here is no accident. Canada’s climb into second place is supported by its natural resources, political stability, and growing AI infrastructure spending, with the country seeing a record 297 FDI announcements in the first half of 2025. Adding fuel to this momentum, investor confidence has also been bolstered by the federal government’s proposed $926 million budget for sovereign AI infrastructure.

How Canada Compares to Other Global Economies

To put Canada’s achievement in perspective, it helps to look at how the broader rankings have shifted over the past decade. The biggest shift in the rankings is China’s decline from #2 to #4 over the past decade, while Canada climbed into second place and Japan rose to third.

This represents a significant reshuffling of global investment confidence. Geopolitical tensions have weighed on China as an investment destination, opening the door for stable, resource-rich, innovation-friendly economies like Canada to rise in investor estimation.

Looking ahead, analysts suggest this trend may continue. The next decade of foreign investment may be defined less by rapid growth alone and more by which economies can offer resilience, infrastructure, and long-term strategic advantage three areas where Canada consistently performs well.

Canada’s Broader Track Record of Investment Confidence

This isn’t a one-off achievement. Canada has built a long-standing reputation as a safe haven for foreign direct investment, backed by multiple independent reports and indices.

Consider the following data points from Canada’s official competitiveness profile:

Business Environment: Canada will be the 2nd best country in the G20 for doing business throughout 2026-2030, and has consistently ranked among the top 10 countries over the last five years.

Foreign Direct Investment Stock: Canada had the second-largest foreign direct investment stock to GDP ratio among G20 countries in 2024.

Banking Stability: Seven of the world’s 50 safest and most dependable banks are located in Canada.

Economic Freedom: Canada is ranked 2nd among G20 countries for economic freedom.

Social Progress: Canada ranks 4th among G20 countries for social progress, and 1st for equal opportunity and 3rd for justice among G7 countries.

These statistics paint a consistent picture: Canada isn’t a flash-in-the-pan investment destination. It’s a country that consistently delivers stability, fairness, and opportunity — qualities that matter enormously to long-term institutional investors.

What This Means for Business Immigrants and Entrepreneurs

For individuals considering business immigration to Canada, this ranking carries real weight. A country ranked second globally for investment confidence is a country actively shaping its immigration policy to attract the right kind of capital and talent.

In fact, Canada is reshaping its entrepreneur immigration strategy to focus more heavily on high-impact investment and innovation. This is a clear signal that Canada’s investor immigration pathways are evolving to prioritize applicants who can contribute meaningfully to the country’s innovation economy — particularly in AI, technology, and infrastructure sectors.

Notably, the federal government has paused the Start-Up Visa Program to new applications, suggesting that policymakers are recalibrating how they select and support investor and entrepreneur immigrants moving forward. For prospective applicants, this means staying updated on Canada’s investor visa programs is more important than ever.

Not Every Ranking Agrees

It’s worth noting that not all international rankings paint Canada in the same light, and a balanced view requires acknowledging this. While Canada excels in investment-specific indices, broader “best country” rankings have told a different story. The 2026 US News Best Countries ranking changed its scoring model, moving away from reputation polling toward a statistical framework covering 100 countries, and Canada’s traditional strengths stability, openness, safety, and immigration appeal — were better suited to the old perception-based approach.

This distinction matters: investment confidence indices focus specifically on where corporations want to put capital, while general “best country” rankings measure a broader mix of quality-of-life and reputational factors. Canada’s strength in the former the metric that matters most to investors and business immigrants remains exceptionally strong.

Why This Matters for the Average Canadian and Newcomer

Beyond the headlines, what does a “second most trustworthy country for investment” ranking actually mean for everyday people?

More Jobs: Foreign direct investment typically translates into job creation, particularly in technology, infrastructure, and resource sectors.

Stronger Currency and Economy: Sustained investor confidence supports a more stable Canadian dollar and broader economic resilience.

Real Estate and Housing Markets: Increased foreign capital often flows into infrastructure and development projects, indirectly affecting housing supply and regional growth.

Immigration Opportunities: As Canada repositions its investor and entrepreneur immigration programs to align with this innovation-focused investment climate, new pathways may open for skilled investors and tech entrepreneurs.

Canada’s Investment Story Is Just Getting Started

Canada’s rise to second place in the 2026 Kearney FDI Confidence Index isn’t just a badge of honor it’s a reflection of years of strategic positioning around political stability, natural resources, AI infrastructure, and strong institutions. As the world increasingly prioritizes technological innovation in investment decisions, Canada finds itself remarkably well-positioned to benefit.

For global investors, business immigrants, and entrepreneurs watching where to place their next bet, the message is clear: Canada remains one of the safest and smartest investment destinations in the world and 2026 may be just the beginning of its next growth chapter.

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