Canada is well positioned to benefit from the United States and Europe looking to shore up supply chain vulnerabilities related to the COVID-19 pandemic, according to a study conducted by the Conference Board of Canada (CBOC). .“Canadian trade has largely been determined by the forces of globalization and has been critical to meeting the broad demands of households and businesses,” said CBOC Chief Economist Pedro Antunes in a press release. .“In addition to the pandemic, growing geopolitical tensions will push businesses and governments towards a more insular economy.”.Antunes said Canada “needs to be proactive in investing in areas where it has a competitive advantage to make use of these opportunities.”.Most of the world responded to COVID-19 by shutting down significant segments of the economy to stop the spread of the virus. The timing, extent, and depth of these lockdowns were aligned, leading to a large hit to the world’s economy in 2020. .The release said global trade has become more complex and interconnected. For developed countries, it said globalization has increased households’ real incomes by reducing inflation, especially on consumer goods. .Globalization has increased competition, expanding the variety of goods and services and lowering their prices. Reversing it would have the opposite effect on people. .The release went on to say Canada is a trusted trading partner, with a strong brand across export categories and important bilateral and multilateral trade agreements. It is a global exporter of energy, agrifood, and many other resources. .Research conducted by the CBOC in collaboration with US and European offices of the Conference Board found a large share of these businesses planned to make changes to the sourcing locations of their raw materials, products, and services. .“The findings were different in Canada, where over 90% of the businesses surveyed reported that they were planning to continue sourcing from the same regions in the next three to five years,” said Antunes. .Alberta and Saskatchewan are set to lead Canada in real GDP growth among all the provinces, with Manitoba close behind, according to a December study conducted by the CBOC. .READ MORE: Alberta and Saskatchewan to lead Canada in economic growth, Manitoba not far behind.“Although the country as a whole is in for a few quarters of effectively zero growth, prospects for the provinces vary considerably,” said CBOC Economic Forecasting Director Ted Mallett. .Alberta’s oil and gas sector production rebounding and increased drilling activity are likely going to give it positive growth in the long term.
