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Canada faces $54,000,000,000 capital flight amid Liberal downturn, Conservative MP asserts

Adding to $500 billion in capital flight over the Liberals’ decade in power

Published on:

14 Oct 2025, 5:40 pm

Conservative MP Raquel Dancho sharply criticized the Liberal government’s economic policies Tuesday, accusing them of driving away billions in investment and undermining Canada’s competitiveness.

In a statement posted to X, Dancho challenged Industry Minister Melanie Joly’s claims that the government is “cutting red tape” and fostering “stability” for investors, pointing to a much different reality.

According to Dancho, nearly $54 billion in capital has left Canada between May and September this year, adding to a staggering $500 billion in capital flight over the Liberals’ decade in power. She attributes this exodus to policies like Bills C-69 and C-48 alongside the emissions cap and industrial carbon taxes. The measures, she argues, create significant barriers to investment and stifle economic progress.

“Government procurement—while important—is not a substitute for competitiveness, nor stability,” Dancho said. She emphasized that true economic stability requires structural reforms, not just promises of growth.

“Talk of growth means little without action to enable it,” she added.

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Minister Joly claims the government is “cutting red tape” and fostering “stability” for investment.

The data tells a different story.

Nearly $54 billion in capital exited the country between May and September—a continuation of the Liberals’ legacy of over $500 billion lost… pic.twitter.com/8zDcIuevoh
— Raquel Dancho (@RaquelDancho) October 14, 2025

According to the CBC, Canada added 60,000 jobs in September, as advertised by Primer Minister Mark Carney on Tuesday. The Carney government is currently spending billions to stimulate various economic sectors under the backdrop of US tariffs and economic stagnation.

Recent data from Statistics Canada and economic analyses indicate significant capital outflows from Canada in 2025, often described as "capital flight" due to the scale and persistence of net divestments. This trend is driven by factors like U.S. tariff uncertainties, weakening investor confidence, high domestic debt levels, and a shift toward foreign assets (particularly U.S. equities).

While foreign direct investment (FDI) into Canada remains positive, portfolio investments (stocks, bonds) show massive net outflows, signalling reduced exposure to Canadian securities by both domestic and foreign investors.

Dancho’s remarks come as businesses and investors increasingly voice concerns over Canada’s regulatory environment — while the Carney Liberals remain optimistic.