INDUSTRY FOCUS
Introduction
Canada boasts a diverse and robust industrial landscape, characterized by its rich natural resources and advanced technologicalcapabilities. Key sectors include natural resources such as oil, natural gas, and mining, with the country being a global leader inthe production of commodities like gold, potash, and uranium. The manufacturing industry is equally significant, producing a widearray of goods from automobiles to aerospace components. Additionally, Canada is renowned for its innovation in technology
and telecommunications, contributing to a burgeoning tech sector. Agriculture and forestry also play pivotal roles, providing asubstantial contribution to both the domestic market and international exports. Together, these industries form the backbone of
Canada's economy, driving growth, employment, and global trade.

Gross Domestic Product (GDP)In 2023, Canada had a population of 38.2 million people. The country's GDP, measured by purchasing power parity (PPP),
stood at US$2.3 trillion, with a notable 3.4% growth observed in 2022 and a 5-year average growth rate of 1.6%. The GDP per
capita was US$58,316, reflecting the nation's economic productivity and standard of living. The unemployment rate was at 7.5%,
while inflation, measured by the Consumer Price Index (CPI), was 6.8%. Foreign Direct Investment (FDI) inflows amounted
to US$52.6 billion, showcasing Canada's attractiveness to international investors. However, public debt was relatively high,accounting for 107.4% of the GDP. The following shows different sectors’ share in Canada GDP:
1- Service Sector: Dominating the Canadian economy, the service sector, including finance, real estate, and business services,
accounted for about 70% of the GDP. The digital transformation accelerated by the pandemic continued to bolster sectors suchas information technology and telecommunications.
2- Manufacturing and Energy: These sectors had mixed results. The energy sector faced fluctuations due to volatile oil prices
and global market dynamics, but the manufacturing sector, particularly in automotive and aerospace, showed resilienceand adaptation to new technologies. Canada's energy sector accounted for approximately 11.8% of GDP.
3- Construction and Infrastructure: Government initiatives focusing on infrastructure development provided a significantboost to the construction sector. Investments in green infrastructure and sustainable development projects also
contributed to GDP growth. Canada's construction and infrastructure sector accounted for approximately 18.2% of GDP.

Economic Overview of Canada in 2023
GDP, PMI, Car Production & Sales, and Fastener Trade

188

Fastener World no.207/2024 惠達雜誌

INDUSTRY FOCUS
Purchasing Managers' Index (PMI)The Purchasing Managers' Index (PMI) is a critical indicatorof economic activity in the manufacturing and service sectors. It
provides insights into business conditions, including new orders,inventory levels, production, supplier deliveries, and employment.
••Services PMI: The Services PMI in Canada consistently
showed robust growth in 2023, averaging around 54.7.

Major Export Destinations:

Canada's car production in 2023 showed signs of recovery
following the disruptions caused by the pandemic and global
semiconductor shortages. According to industry reports,
Canada produced approximately 1.4 million vehicles in 2023,
up from 1.1 million in 2022.
Car sales in Canada during 2023 were influenced by various
economic and market factors. For 2023 from reportingmanufacturers came in at 1.664 million units in 2023, up
11.8% from 1.489 million units sold in 2022.

Fastener Trade
In 2023, the fastener trade in Canada was shaped by global
economic conditions and domestic market dynamics. Canada’s
fastener imports and exports activities demonstrated resiliencein 2023. According to trade data, Canada's exported fasteners
were worth approximately USD 644 million in 2023. And theimported fasteners were worth approximately US$1.8 billion
in 2023.

1- Import
Total Imports: Canada's total imports of fasteners for 2023
amounted to US$1,979,982,000.
Major Import Sources:•USA: The United States was the largest supplier offasteners to Canada, accounting for 48% of the total
imports, valued at US$947,033,000. This underscores thestrong trade relationship and supply chain integration between
Canada and the USA.

•China: China was the second largest source of fasteners,
contributing 14% to Canada's imports, with a value of
US$282,425,000. This highlights China's significant role insupplying fasteners to the Canadian market.

•Taiwan: Taiwan also accounted for 14% of the fastener

Copyright owned by Fastener World
Article by Dr. Sharareh Shahidi Hamedani, UNITAR International University

190

Others: The remaining 24% of fastener imports, totalling
US$478,287,000, came from various other countries. This
demonstrates a diverse range of import sources, which canhelp reduce dependency on any single country.

2- Export

The automotive industry is a vital component of Canada’s
manufacturing sector, contributing significantly to GDP andemployment. In 2023, the industry experienced both opportunities
and challenges.

••

Manufacturing PMI: In 2023, Canada's Manufacturing
PMI indicated moderate expansion throughout the year,
averaging around 52.5. This reading, where a value above
50 signifies expansion, reflected the sector's recovery frompandemic-induced disruptions.

Car Production and Sales•

imports, similar to China, with imports valued at
US$272,237,000. This indicates Taiwan's importance as a key
supplier in this sector.

Fastener World no.207/2024 惠達雜誌

Total Exports: Canada's total exports of fasteners for 2023
amounted to US$644,003,000.

•USA: The United States was the largest market for
Canadian fasteners, accounting for 83% of the totalexports, with a value of US$531,531,000. This underscoresa significant dependency on the US market for the fastenerindustry in Canada.

•China: China received 4% of Canada's fastener exports,
amounting to US$ 26,847,000. This represents a relatively
small but notable market for Canadian fasteners.

•Others: The remaining 13% of fastener exports, valued
at US$85,625,000, were distributed among various othercountries.

Conclusion
The economic landscape of Canada in 2023 was shapedby a combination of recovery and growth across varioussectors. The GDP growth of 1.5% reflected resilience andadaptation to global and domestic challenges, while the PMI
indicated positive trends in both manufacturing and services.
The automotive industry showed signs of recovery, driven
by advancements in technology and increasing demand forelectric vehicles. Meanwhile, the fastener trade demonstrated
robustness, supported by strong production capabilities andgrowing domestic and international demand. However, despite
positive growth, the Canadian economy faced challenges suchas inflationary pressures, supply chain disruptions, and labourmarket constraints. The Bank of Canada maintained an averageinterest rate of around 4.25% throughout the year to manage
inflation, which was hovering around 3.4%. On the other hand,
Government policies in 2023 focused on economic recovery
and sustainability. Efforts to diversify the economy, promote
innovation, and invest in green technologies were central to thepolicy agenda. Additionally, trade agreements and diplomaticefforts aimed to secure Canada’s position in global markets,particularly in the face of geopolitical tensions.
At the end, Canada moves forward, and the focus on
innovation, sustainability, and diversification will be crucial
in navigating the evolving economic landscape. Continued
investment in technology, infrastructure, and green initiatives
will play a key role in ensuring long-term growth andcompetitiveness in the global market. The economic indicatorsand sectoral performances in 2023 provide a foundation for
future development and highlight the resilience of the Canadian
economy in the face of ongoing challenges.