Canada's foreign direct investment inflows slowed sharply in Q1

Canada's foreign direct investment inflows slowed sharply to $6.7 bln in Q1, the lowest in nearly three years, as management firms pulled back after a surge in Q4 and energy firms were a bit more cautious. 

Portfolio investment inflows rebounded to $37.6 bln, after inflows were near zero in the prior quarter. The foreign buying was concentrated in private corporate and federal government bonds. Meantime, Canadians divested $5.3 bln in foreign securities following big buying in 2014 ($56 bln) which was the largest annual outflow since 2006. 

On balance, that left net portfolio inflows at $42.9 bln, the largest on record despite the sharp depreciation in the Canadian dollar. And, Canadian direct investment abroad was solid at $16.5 bln, with finance accounting for the bulk of activity.