At the end of 2002, foreign direct investment (FDI) in Canada, which has increased steadily since the early 1950s and by an annual average of 9.9% over the past 10 years, amounted to US $349.4 billion. This was only 4.7% above the level in 2001, the lowest rate of increase since 1993. FDI inflow in 2002 was US $33.6 billion, about 20% lower than 2001. The US share in annual FDI inflow declined from 91% in 2001 to 74.7% in 2002. The second largest source of inward FDI was the European Union. Canada's relative share of global inward FDI remained unchanged in 2001 and 2002, at about 4% of the world total. The inflow of foreign portfolio investment (foreign purchases of Canadian stocks and bonds) declined from US $30.1 billion to US $17.9 billion
Outward FDI by Canadians has grown at an even faster average rate (14.6%) than inward FDI over the last 10 years, although the rate of growth declined to 10.8% in 2002. FDI assets held by Canadians reached US $432 billion in 2002. Outward FDI flow was US $43.8 billion down about 20% from 2001. Direct investments in the United States accounted for 47% of outward FDI, down from 60% in 2001. As in 2001, Canada accounted for about 6% of the world total outward FDI in 2002. Outward portfolio investment in 2002 was US $24.7 billion, down from US $37.7 billion in 2001 in 2002, up 10.8% from 2001.