Canada’s economy is on a promising trajectory, with the Bank of Canada projecting GDP growth of 1.5% this year, 2.2% next year, and 1.9% in 2026. This upward trend is driven by increased business investment, the completion of the Trans Mountain pipeline, and robust population growth, all of which contribute to a favorable environment for international trade and export opportunities.
Canada’s Economic Landscape
Canada’s economy is anchored by three main industries: services, manufacturing, and natural resources. Each plays a crucial role in shaping the country’s economic output and offers unique opportunities for foreign exporters.
- Service Industries
The service sector dominates the Canadian economy, employing more than 75% of the workforce. Key areas within this sector include transportation, education, healthcare, banking, and tourism. With a strong emphasis on services, there are numerous opportunities for international companies to tap into Canada’s growing demand for specialized services, particularly in healthcare, education, and technology. - Manufacturing Industries
Canada’s manufacturing sector is highly diversified, producing a wide range of goods, from aerospace technology to automobiles. As the eleventh-largest auto-producing nation globally, Canada exported $30 billion worth of vehicles in 2022. This makes Canada a prime market for suppliers of automotive components, machinery, and advanced manufacturing technologies. - Natural Resource Industries
Natural resources have long been a cornerstone of Canada’s economy. Industries such as forestry, agriculture, mining, and energy are vital to the country’s export profile. For companies specializing in sustainable resource management, environmental technology, or energy solutions, Canada offers a wealth of opportunities to engage in mutually beneficial trade relationships.
Opportunities in the Automotive Sector
The automotive industry is a particularly attractive sector for exporters looking to enter the Canadian market. With 1.5 million vehicles produced annually, Canada’s automotive industry is thriving. Key players include brands like Ford, Toyota, Chevrolet, Hyundai, and Honda, which dominate the market with their reliable and affordable vehicles.
As the Canadian market continues to evolve, there is a growing demand for hybrid and electric vehicles, presenting an opportunity for companies specializing in green technologies to introduce innovative products that align with Canada’s environmental goals.
Why Canada?
Canada’s stable economy, strategic location, and strong trade relations with the United States make it an ideal market for global exporters. The country’s commitment to free trade, combined with its highly skilled workforce and advanced infrastructure, ensures that businesses entering the Canadian market have the tools and support they need to succeed.
For companies looking to expand their export footprint, Canada’s diverse economy, strong consumer demand, and strategic position in North America make it a market with significant untapped potential.
Key findings
The products with greatest export potential from World to Canada are Motor vehicles for the transport of <10 persons, Motor vehicles for the transport of goods, and Medicaments for retail sale, n.e.s.. Motor vehicles for the transport of <10 persons shows the largest absolute difference between potential and actual exports in value terms, leaving room to realize additional exports worth $8.7 bn. (Source: ITC)
Key Economic Indicators
- Population: 39 million
- GDP Annual Growth: 3.4%
- GDP Per Capita: USD 54,917
- Inflation Rate: 2.5%
- Interest Rate: 4.50%
- Government Debt to GDP Ratio: 69%
- Exchange Rate: 1 USD = 1.36 CANADIAN Dollar
- Import Tariffs: 05% to 08%
Transportation Options
- By Air: Flights from Jinnah International Airport (KHI) to Toronto Pearson International Airport (YYZ) take about 14 hours.
- By Sea: The quickest way to get from Karachi to Montreal (CAMTR) by ship will take about 46 days and 15 hours.
Key Events in CANADA 2025
Upcoming Exhibitions
| 03 ~ 05 January 2025 | The North American International Motorcycle Supershow | Motorcycle & Parts | International Centre Entrance at Hall 1,2,3 & 5, 6900 Airport Road, Mississauga. ON L4V 1E8 |
| 17 ~ 26 January 2025 | The Auto Show | New Electric, Hybrid and traditional vehicles and light trucks as well as auto – related products | Montreal Convention Centre, 101 PI. Jean-Paul-Riopelle… |
| 27 Feb ~ 02 March 2025 | RV Show and Sale | Recreation Vehicle | International Centre Entrance at Hall 1,2,3 & 5, 6900 Airport Road, Mississauga. ON L4V 1E8 |
| 18~20 March, 2025 | Canada’s Farm Show Regina | Farm with Parts | 1700 Elphinstone St REAL District, SK S4P 2Z6, Canada |
Mashood Khan
Director – Mehran Commercial Enterprises
Expert Auto Sector / Former Chairman PAAPAM