Canada is back is the Top 10 economies of the world, having the 10th biggest economy in 2018 and 2019, according to Cebr, Centre for Economics and Business Research based in London.
Canada, similarly to Australia, draws many highly qualified immigrants from all over the world. This is believed to have a great impact on the rapid economic growth of these countries.
It will contribute to the further economic growth of Canada, making it the world’s 8th biggest economy by the year 2029, leaving Brazil and Italy behind, predicts Cebr.
In the past economists predicted Canada’s economy to decline as the developing countries are catching up with the developed countries and Eastern Asian countries have booming economies.
10 years ago Canada truly dropped out of the world’s top 10. The speedy recovery of the Canadian economy is an example of the effect that the immigration of highly qualified professionals has on the countries.
The flexible approach of Canada’s government
The latest success in the economy is not happening by chance. Canada chose a very clear path as it has dedicated more time and investments to the latest technologies. The fourth industrial revolution is on the way and Justin Trudeau’s team has been very ruthless while making decisions.
The first big changes were about iGaming platforms. Trudeau is a big fan and preacher of technologies and wants to implement the latest advancements in the business. Online casinos and gambling platforms were good options for testing different financial technologies. Trudeau team started the usage of cryptocurrencies and gave the green light to one big industry – iGaming. Best Canadian online casino platforms added Bitcoin and other cryptos as an option and it was a big chance for the industry. Since 2017, Canadian casinos became popular in the digital gaming world as Bitcoin payments were very handful for many international players.
Along with cryptocurrencies, online casinos in Canada implemented other financial technologies and attracted the attention of millions of players around the world. The government was very flexible while helping the iGaming industry to reach the desire and return the dividends back from casino platforms through taxes. That flexible appraoch is very important when the government wants to get back in the top 10 economies.
Canada is finally back in the top 10 economies of the world
South Korea ranked number 11. The US-China trade has greatly hindered South Korea’s economy leaving it slightly behind Canada. Right now number 10 with a GDP of US$1.731 trillion (CAD$2.251 trillion), Canada is expected to have the world’s 9th largest economy by 2024 and the 8th largest by 2029. The factors that are hindering the growth of Canada’s economy are federal debt, a high number of unemployment and the Canadian minority government encountering resistance in further development plans.
Main trends of Canada’s economy to follow in 2020
Experts shared their ideas on what will the factors affecting Canada’s economy will be in 2020. Here are some of the factors: Canada’s investments in nonresidential structures, machinery, and equipment have declined by 20% in the last 5 years; wage inflation is happening in Canadian factories; foreign direct investment in Canada is rapidly growing, reaching 65.8 billion USD over the last year; business investments in Canada are lower than they were before the 2008 economic crisis; corporate debt has been rising and will be one of the factors testing Canada’s economy in the future; more goods are manufactured in Canada then sold and it puts further production and employments under risk; the possibilities and the development of the Indigenous economy and how the government is investing in the growth of the Indigenous economy; the Canadian investment environment needs to be improved; the manufacturing industries of Canada are on the decline; Canada’s economy depends too much on the non-renewable energy sector; Greenhouse Gas emission commitment made under the Paris agreement is extremely hard to reach taking into consideration the current demand on fossil fuel; oil supplies exceeding the capacity of the pipelines; the increasing share of the electric vehicles; investments in the renewable energy. are on the rise; these and other trends such as the sale of the truck and SUVs, and electricity prices in Ontario will be something to pay attention to.
