Canada's international investment position, first quarter 2026
Released: 2026-06-11
$1,360.5 billion
First quarter 2026
Canada's net foreign asset position, the difference between its international financial assets and international liabilities, was down by $310.8 billion to $1,360.5 billion at the end of the first quarter of 2026, the lowest level since the third quarter of 2023. This marked the second consecutive quarter of significant declines in the net foreign asset position, down from $1,825.0 billion at the end of September 2025.
Chart 1
Canada's net international investment position
While the decline in the fourth quarter of 2025 was mostly explained by the revaluation effect from fluctuations in exchange rates, the revaluation effect resulting from market price changes (-$380.5 billion) was the main contributor to the decrease in Canada's net foreign asset position in the first quarter of 2026. The performance of stock markets varied across regions in the first quarter. While the Canadian stock market grew by 3.3%, the US (-4.3%) and the European (-3.8%) stock markets were both down. Canada's international investment position is strongly exposed to equity instruments. At the end of the first quarter, 68.5% of Canada's international assets and 49.3% of its liabilities were held in the form of equities.
The revaluation effect from fluctuations in exchange rates (+$88.8 billion), which increased the value of assets more than the value of liabilities in the first quarter, moderated the overall decline in Canada's net foreign asset position. During the quarter, the Canadian dollar depreciated by 1.7% against the US dollar, by 0.1% against the Euro, and by 0.2% against the Japanese yen. At the end of the first quarter, 97.1% of Canada's international assets were denominated in foreign currencies, compared with 35.7% of its international liabilities.
On a geographical basis, Canada's net foreign asset position with the United States declined by $120.5 billion to $1,263.7 billion at the end of the first quarter.
Meanwhile, Canada's net foreign asset position with the rest of the world was down by $190.3 billion to $96.9 billion at the end of the first quarter, the lowest level since the third quarter of 2022. This decline reflected lower market prices and strong borrowing activities.
Chart 2
Contributors to the change in the net international investment position
Canada's international assets decrease
Canada's international assets were down by $44.8 billion (-0.4%) to $11,288.4 billion at the end of the first quarter. A substantial downward revaluation attributable to market price changes (-$231.6 billion) led the decline. The effect of exchange rate fluctuations (+$133.7 billion) and acquisitions of foreign assets (+$44.7 billion) moderated the overall decrease. By category of investment, Canadian portfolio investment abroad edged down to $4,641.1 billion at the end of the first quarter, a level just below that of Canadian direct investment abroad ($4,662.1 billion). The reduction was mainly in holdings of US portfolio shares (-$32.3 billion), driven by a decrease in share prices despite unprecedented acquisitions in the quarter.
On the other side of the ledger, Canada's international liabilities amounted to $9,927.8 billion at the end of the first quarter, an increase of $266.0 billion (+2.8%) from the previous quarter. This increase was primarily the result of an upward revaluation due to fluctuations in market prices (+$148.9 billion). Foreign borrowing activity (+$55.1 billion), led by record foreign acquisitions of Canadian bonds, and revaluation from exchange rate movements (+$44.9 billion) also contributed to the growth.
Chart 3
Canada's international assets and liabilities
Chart 4
Canada's net international investment position, by region
Canada's gross external debt increases
Canada's gross external debt, or the value of Canadian debt instruments held by foreign investors, reached $4,839.2 billion at the end of the first quarter, an increase of $60.8 billion from the end of the fourth quarter of 2025. Canada's gross external debt amounted to 145.7% of the gross domestic product in the first quarter of 2026, up slightly from the previous quarter.
On a sector basis, the growth in the first quarter of 2026 was mainly in the financial sector, led by new bonds issued abroad by Canadian chartered banks. The financial sector represented 59.6% of Canada's total gross external debt at the end of the first quarter. Meanwhile, the gross external debt of the government sector grew by $26.0 billion to $949.6 billion, a 10th consecutive quarterly increase. The government sector's gross external debt has doubled since the fourth quarter of 2019.
Chart 5
Canada's gross external debt as a percentage of gross domestic product
Note to readers
Definitions
The international investment position is the value and composition of Canada's assets and liabilities to the rest of the world.
Canada's net international investment position is the difference between Canada's assets and liabilities to the rest of the world. An excess of international liabilities over international assets can be referred to as Canada's net foreign debt. An excess of international assets over international liabilities can be referred to as Canada's net foreign assets.
Foreign direct investment is presented on an asset-liability principle basis (that is, a gross basis) in the international investment position. Foreign direct investment can also be presented on a directional principle basis (that is, a net basis), as shown in supplementary foreign direct investment tables 36-10-0008-01, 36-10-0009-01 and 36-10-0659-01. The difference between the two foreign direct investment conceptual presentations resides in the classification of reverse investment, such as (1) Canadian affiliates' claims on foreign parents and (2) Canadian parents' liabilities to foreign affiliates. Under the asset-liability presentation, (1) is classified as an asset and included in direct investment assets, and (2) is classified as a liability and included in direct investment liabilities.
Next release
International investment position data for the second quarter of 2026 will be released on September 10.
Products
The International trade statistics portal is available on the Statistics Canada website.
The updated Canada and the World Statistics Hub (13-609-X) is available online. This product illustrates the nature and extent of Canada's economic and financial relationship with the world using interactive charts and tables. It provides easy access to information on trade, investment, employment and travel between Canada and a number of countries, including the United States, Mexico, China, Japan, Belgium, Italy, the Netherlands and Spain.
The Canada's international trade and investment country fact sheet (71-607-X) is also available.
The Methodological Guide: Canadian System of Macroeconomic Accounts (13-607-X) is available.
The User Guide: Canadian System of Macroeconomic Accounts (13-606-G) is also available.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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