Canada’s economy is resource-rich and stable but faced headwinds from commodity price volatility and a smaller domestic market. On the other hand, the United States (the largest economy in the world) benefits from greater population growth and innovation-driven sectors.
The United States has consistently maintained a higher GDP per capita than Canada and the gap has more than doubled in the last 35 years. Approximately 75% of Canadian exports go to the U.S., making it one of the most geographically concentrated export relationships in the world. Key sectors such as energy and automotive manufacturing are highly integrated across the border, with supply chains that rely on cross-border flows of goods and components. U.S. economic performance directly affects Canada, as about 20% of Canada’s GDP is tied to goods exports to the U.S.
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