TORONTO – The chief economist at one of Europe’s largest banks says Canada stands to gain as global investors rethink their focus on the United States.
BNP Paribas chief economist Isabelle Mateos y Lago says the volatility in the U.S. is making investors regain an appreciation of the value of stable returns and predictability, even if it means giving up some outsized gains.
She says countries around the world are now in a sort of beauty contest as they market themselves to investors looking to diversify from the U.S., and she would be shocked if Canada doesn’t benefit.
Mateos y Lago, who was chief markets strategist at U.S. investment manager BlackRock before moving over to BNP last year, says the recent Canadian election also helps create momentum and that long-overdue structural reforms will also boost interest.
While Canada already has many free trade deals in place, she says there is room to improve them by further lowering barriers as a way to help the country expand its scale and markets.
Mateos y Lago says Canada also has an important role as chair of the G7, which meets in Alberta next week, by doing what it can to save and preserve as much of the existing international rules and order that have benefited so many.
This report by The Canadian Press was first published June 12, 2025.
