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Canada Faces $22.6B Capital Flight Amid U.S. Policy Fears

8/22/2025

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Story summary
  • Canada experienced a net outflow of $22.6 billion from stocks and bonds in early 2025, linked to concerns over U.S. policies.
  • Foreign investors withdrew $43.6 billion from Canadian equities, with bond purchases remaining stagnant.
  • There are increasing calls for capital-gains tax reform to improve Canada's investment attractiveness amid economic instability fears.