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Canada's Investment Push Gains Momentum, but Success Hangs on Execution, KPMG Canada Says

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Canada's ability to attract senior executives from some of the world's largest investment firms to Toronto is a strong indication of growing investor interest in the country, according to KPMG Canada in a note, referring to Monday and Tuesday's investment summit.

Amid major shifts in global trade and financial markets, investors are seeking to diversify portfolios, mitigate risks and secure stable long-term returns, said KPMG Canada in a note published late Friday.

Canada's strengths are well established, from its abundant natural resources and fiscal capacity to strong institutions, a deep financial sector and ongoing access to the US market, it added. However, these advantages aren't new.

"The new 'wow' factor for foreign investors is Canada's renewed sense of economic ambition," wrote KPMG Canada Partner and Chief Economist Ali Jaffery in the note.

Converting investor interest into substantial new investment will be difficult, said Jaffery. Global direct investment has slowed amid higher long-term borrowing costs, volatile commodity prices, geopolitical risks and strong public-market valuations.

Canada will face fierce competition for incremental capital.

However, execution will be key, with investors seeking timely, cost-effective delivery of major projects and greater policy clarity, according to KPMG Canada.

The country's steady 2% share of global international investment, stronger commodity prices, government support and deep domestic capital base offer reasons for cautious optimism.

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International

Supplier Costs for New Zealand Supermarkets Rise Nearly 2% in August

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International

Australia's Annual Pace of Inflation Expected to Rise in August, Westpac Says

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ASX 200
International

New Zealand Farmer Perceptions of Current Economic Conditions in January Show Strongest Reading Since 2017

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