06:57 AM EDT, 05/31/2024 (MT Newswires) -- Following a multi-year period of soft foreign direct investment (FDI) inflows, Canada hit a new milestone in Q1 -- flows marked a net divestment from the country for the first time in 14 years, noted Bank of Montreal /(BMO).

True, the figure was weighed by merger-and-acquisition (M&A) activity in the finance and insurance sector -- but still, it's notable that other activities (M&A in other sectors, reinvested corporate earnings, etc.) didn't provide enough offset, said the bank.

On the other side, Canadian companies' direct investment abroad increased in the quarter, in part from the highest level of M&A activity in a year, stated BMO.

In total, foreign investment patterns remain weak, even beyond quarterly movements, added the bank. The softness highlights concerns about the attractiveness of doing business in Canada, in turn weighing on the growth outlook.