Supply Management goes globe trotting to evaluate the procurement potential of countries around the world…
AREA 9,984,670 km²
THE HELICOPTER VIEW Canada is the world’s second largest country by area, 10th largest by economy and has a reputation for being strong, stable and inclusive.
ECONOMIC OUTLOOK Canada is on the up – the OECD has praised its expansionary fiscal policy. While the country’s economic fortunes have been mixed in recent years, the uptick in commodity prices has helped. GDP is expected to have grown 2.8% last year, before slowing slightly to 2.3% in 2018.
BIGGEST INVESTORS The US is the biggest contributor of FDI to Canada, investing $361bn in stocks in 2014. The Netherlands came second, then Luxembourg and the UK.
SUPPLY CHAIN ISSUES Canada’s neighbour and biggest trading partner may have also become its biggest supply chain risk. While no strangers to trade disputes, Trump’s America First policy has heightened the issue. The president has overturned a number of trade deals, including the US-Canada-Mexico NAFTA agreement.
STRENGTHS Canada has a stable government, plenty of natural resources, an educated workforce and a large and diverse market. Consumers are spending and business investment is at its highest since 2012.
CHALLENGES The Royal Bank of Canada expects political uncertainty from the US to be a persistent feature, and has warned differences in monetary policy could depress the value of the Canadian dollar.
BOTTOM LINE The government does not appear to be showing any of the protectionism of its southern neighbour and the economy looks strong. All this makes Canada a business destination in its own right, not just a stepping stone into the New World.