Trade Matters

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 fr...

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-insight...

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://...

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   

We are sharpening our focus to break down the latest trade developments, explain why they matter to Canada, and help more Canadian companies thrive in international markets. Welcome to Trade Matters. https://go.edc.ca/trade-insights_pod

According to analysis in our  Country Risk Quarterly , a growing number of countries are beginning to face varying levels of debt distress. To know more: https://go.edc.ca/trade-insights_pod

Each year we publish our analysis of the top risks facing Canadian exporters over the next 12-18 months. While protecting your business from all risk is neither possible nor even desirable, planning for the most plausible and impactful ones can help fine-tune your risk management systems and better position you for success. To know more: https://go.edc.ca/trade-insights_pod

In our summer  Global Economic Outlook , we expect a significant drag on some of the key drivers behind the consumer activity that’s been powering much of the momentum up to now. https://go.edc.ca/trade-insights_pod

While Canadian exporters aren’t as downbeat as they were in the fall, it may not be time to break out the champagne just yet. https://go.edc.ca/trade-insights_pod