As reported atradiusDAfter expanding 3% in course of the 2017, last year Canadian GDP growth is dropped at about 2%, driven by the decline of private consumption, From lower wage growth edall 'increase in interest rates from 1% in December 2017 tocurrent 1,75%. In this scenario, noGDP growth of less than 2019% is expected in 2 Since exports (-2%)domestic consumption (-1,4%) and investment growth will further decline. However, the Canadian economy is expected to continue stay in the area positive, with low unemployment, inflation stable al 6% and rising, historically low interest rates. After reductions of more than 5% in 2016 and 2017, the number of business bankruptcies is expected to stabilize in course of the next two years, thanks to the lower economic growth eathe rise of the interest rates.
The new deal between USA, Mexico e Canada (USMCA) reduced trade policy uncertainty in North America, which has so far been a major drag on business confidence and investment. Along with Mexico, Canada is protected from any global tariffs on cars that apply to it USA they could impose, for reasons of national security, through a tariff-free quota well above current export levels. However, despite the agreement, the tariffs US on Canadian steel and aluminum imports remain in place for the time being. Also, the current trade conflicts, in particular between USA and China, continue to weigh on both global growth and commodity prices. And right thereCanada's growth is closely linked to raw materials: it is no coincidence that in recent years the country has suffered the negative impacts caused by the performance of the American economy during the 2009 crisis and in 2015, following the collapse in the price of petrolium. From this point of view, protectionist policies del president Trump, already started with the imposition of tariffs on iron and aluminum, could have a negative impact on growth Canadian already in the short term. For this, in recent years the Government of Ottawa has been trying to diversify the economy, with heavy investments in the agricultural sector and in the IInformation Technology.
Canada in recent years has become a very interesting market for potential investors and Italian SMEs, in particular after the provisional entry into force of Comprehensive Economic and Trade Agreement (CETA) of 21 September 2017. Here then what unot of the most important aspects that companies must take into consideration if they decide to investing or exporting to Canada is definitely the exchange rate: The Canadian Dollar (CAD) is a highly volatile currency, just think that in the last few two years the exchange rate with the euro went from a minimum of 1,38CAD (February 2017) to a maximum of 1,61CAD (March 2018), to certifyrsi now at 1,51CAD. Another important aspect that should not be underestimated è the distance, in particular for regarding exporting SMEs: gensure the presence, support, customer care, the management of returns have in fact become crucial elements for to compete on the local market. It becomes fundamental at this point be aware of come the vastness of the territory and the various laws that regulate the individual provinces presuppose perfect organization and knowledge of all the distribution and logistics aspects the.
