In our summer Global Economic Outlook (GEO) report, EDC Economics expects the global economy to see modest growth of 3.1% in 2024, as key central banks begin their policy rate descent. This was our last podcast episode of the Trade Matters series. To continue reading the biweekly column, check out our website - EDC Economics: Connecting Canada to the world | EDC If you want more audio content from EDC, check out our new podcast, Export Impact - The Export Impact • A podcast on Spotify for Podcasters
Canadian direct investment abroad (CDIA) and the rise of Canada’s foreign affiliates creates stable and long-lasting links between economies, strengthening international economic integration and providing access to global markets, allowing companies to grow their international presence and business. To know more: https://go.edc.ca/trade-insights_pod
Did you know that our second-largest partner is the European Union? While still under provisional application, Canadian businesses have enjoyed preferential access to this affluent market since September 2017, thanks to the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). To know more: https://go.edc.ca/trade-insights_pod
EDC’s biannual Trade Confidence Index (TCI) survey improved to 70.1 index points this spring—continuing the volatile trend of the last four years. Despite the seemingly endless challenges facing the world and global trade, prospects of a resurgence in economic activity buoyed Canadian exporter sentiment since our last survey, released in December 2023. To know more: https://go.edc.ca/trade-insights_pod
The world economy is expected to continue showing remarkable resilience, notwithstanding myriad risks challenging businesses today. What’s more, elevated levels of uncertainty are keeping competition on the sidelines, making it easier for those who do their due diligence and pay attention to their scenario analyses to find value. To know more: https://go.edc.ca/trade-insights_pod
In our latest Global Economic Outlook, we forecast a smooth but uninspiring ride through this year, with the global economy expected to grow by just 2.9%, with more optimism for next year, as lower interest rates and the normalization of activity help leave the post-pandemic economy behind. To know more: https://go.edc.ca/trade-insights_pod
While the energy transition isn’t a linear process, Canadian oil producers need to make the investments necessary to help lower costs, add value, improve carbon productivity and leverage existing processes to build a bridge toward it. To know more: https://go.edc.ca/trade-insights_pod
The unprecedented number of elections this year comes amid heightened geopolitical uncertainty. Canadian exporters should keep a close watch on the policy environment. To know more: https://go.edc.ca/trade-insights_pod
Small- and medium-sized enterprises (SMEs) are pivotal to Canada’s trade success, yet in a world where we expect to see a surge in climate-focused regulations, this critical segment is underequipped to reduce their carbon emissions, with main challenges being cost considerations and staffing limitations. To know more: https://go.edc.ca/trade-insights_pod
Supply chain woes are back. Just as the global economy appears to be getting past the effects of pandemic-era disruptions, Iranian-backed Houthi rebels have mounted more than 30 attacks on ships passing through the Red Sea. Will the challenges in this vital waterway substantially impact Canada? To know more: https://go.edc.ca/trade-insights_pod
According to our latest Trade Confidence Index (TCI), confidence fell across all regions of the country. While all components of the index dropped, domestic economic conditions and domestic sales posted the sharpest declines in our biannual survey. To know more: https://go.edc.ca/trade-insights_pod
In our latest Global Economic Outlook, we expect central banks to cut rates, with a gaze firmly fixed on inflationary trends. The Bank of Canada, the U.S. Federal Reserve, and the European Central Bank will begin cutting this year, but it’ll take them well into 2025 to get policy rates to their neutral levels—the point at which rates neither help nor harm economic activity. To know more: https://go.edc.ca/trade-insights_pod
December is traditionally a time for forecasters to take stock of the year that was; celebrate the good calls, more commonly account for the bad ones and sharpen our focus on what it all means for the years ahead. To know more: https://go.edc.ca/trade-insights_pod
Geopolitical uncertainty has always been a concern for Canadian exporters doing business abroad. How can businesses measure and convert these risks into costs that help better inform decision-making? To know more: https://go.edc.ca/trade-insights_pod
Boosting Canadian competitiveness, promoting cleantech entrepreneurship and supporting startups that are experimenting with nascent technologies is essential for Canada’s cleantech sector to be successful. To know more: https://go.edc.ca/trade-insights_pod
Despite a challenging year, the Indo-Pacific remains an important engine of global growth. There is one US$1.7 trillion economy that stands as a crucial foundation to the region’s economic architecture, and a key market for growing Canadian trade opportunities. Welcome to the Republic of Korea (ROK)! To know more: https://go.edc.ca/trade-insights_pod
The impacts of central bank rate increases are finally hitting home in a real way in North America, Europe, and across other major economies. Could the global economy grow by a not-too-hot-not-too-cold number? To know more: https://go.edc.ca/trade-insights_pod
Indonesia is already Canada’s largest ASEAN trading partner, with Canadian exports skyrocketing 45% last year. We have also recently opened a regional office in Jakarta. Regardless of the sector, the demand from Indonesia is here, for those Canadian companies willing and able to supply it. To know more: https://go.edc.ca/trade-insights_pod
Amidst all the geopolitical noise, the U.S. dollar still dominates foreign exchange trades, accounting for more than half of international payments and almost 85% of all trade finance transactions. Will Canadian exporters have to adapt if things change going forward?https://go.edc.ca/trade-insights_pod
Policy-makers in the European Union (EU) recently agreed to implement the world’s first carbon border adjustment mechanism (CBAM), aimed at contributing to global decarbonization efforts. So, what does this mean for Canadian exporters? https://go.edc.ca/trade-insights_pod