You might be wondering how Canada is fairing on the global market. The status of the dollar is obvious enough, but how is the international perception of Canada influencing trade? And what is the cause of Canada’s limited prospects in terms of economic growth? Read on for a Canada Day-inspired update.
Muted Economic Growth
- In 2022, Canada’s real GDP growth was 3.8%, but this has “decelerated to 1.2% in 2023, standing below the average growth of 1.6% in developed economies” (Euromonitor International, 2024, Prospects section, para. 1).
- Euromonitor International (2024) listed the following as causes of Canada’s economic slowdown:
- Weak business investment
- Declining external demand
- Heightened global uncertainty
- Tightening of monetary policy
- High household debt levels
- Muted retail sales
- Many countries are experiencing similar reductions in economic growth, with the USA only experiencing marginally greater GDP growth than Canada (Canada Country Monitor, 2024). However, with the USA receiving 77.8% of all goods exported from Canada, the neighboring country’s slightly stronger economic performance benefits trade (Euromonitor International, 2024).
External Demand Influenced by Imagery
Nation Brands Index 2023: Japan takes the lead for the first time in NBI history
- “In 2023, Canada experienced a 4.7% decrease in the value of goods exported, due to weak foreign demand” (Euromonitor International, 2024, Prospects section, para. 5).
- The international image of nations is important to the ability to attract trade and investment. The “Anholt-Ipsos Nation Brands Index (NBI) study has measured perceptions of nations around the world” for more than 15 years, and in 2023, Canada ranked as the third nation with the strongest brand (McGrath et al., 2023, para. 1).
- Nation branding is “an effort to attach a positive image to a nation and, seen like this, it can be argued to be an instrument of the soft power of a country” (Theodoropoulou & Tovar, 2020, pg. 9). Simon Anholt, founder of Nation Brands Index, says that nation brands are “symptomatic of the geopolitical undercurrents that shape our world and our collective future” (McGrath et al., 2023, Japan pulls ahead section, para. 2).
What is Canada’s Brand?
- According to Destination Canada’s “Brand Narrative” (n.d.), there is one thing that unites the nation: openness.
“From our wide open spaces, to welcoming visitors with open hearts, to open minds that embrace new ideas and perspectives, our openness permeates everything we do” (Destination Canada, n.d., Brand Narrative section, para. 3-4).
- This statement aligns well with the 2023 Nation Brands Index (NBI) findings. Out of the “20 major advanced and emerging economies” surveyed by NBI, Canada ranked as the most generous nation, and the second most trustworthy nation (Ipsos, 2023, pg. 4). Canada also ranked second for perceived quality of life and equality in society, speaking to the “open hearts, open minds” aspect of the country’s brand (Destination Canada, n.d.; Ipsos, 2023)
- In addition to influencing trade, nation branding also significantly contributes to tourism. Canada is perceived to be “focused on protecting wildlife and restoring habitats,” which likely benefits global interest in Canadian national and provincial parks (Ipsos, 2023, pg. 18).
Recommended Reading
To learn more about nation branding and its neoliberal origins, we recommend the following sources:
- Aronczyk, M., & Powers, D. (Eds.). (2010). Blowing up the brand: critical perspectives on promotional culture. P. Lang.
- Available at UBC
- Aronczyk, M. (2013). Branding the nation: the global business of national identity. Oxford University Press.
- Potter, H. (2009). Branding Canada: projecting Canada's soft power through public diplomacy. McGill-Queen's University Press.
- Available at UBC
Sources
Canada Country Monitor. (2024, June). S&P Global: Country/Territory Report - Canada. Retrieved from Business Source Ultimate database.
Destination Canada. (n.d.). Brand Story. https://brand.destinationcanada.com/en/brand-story
Euromonitor International. (2024, May 17) Economy, Finance and Trade: Canada. Passport. Retrieved from Passport GMID database.
Ipsos. (2023, November). The Anholt-Ipsos Nation Brands Index: Press Release – Supplemental Report. https://www.ipsos.com/sites/default/files/ct/news/documents/2023-10/NBI-2023-Press-Release-Supplemental-Deck-December-23.pdf
McGrath, J., Bobev, M., & Liedel, K. (2023, November 1). Nation Brands Index 2023: Japan takes the lead for the first time in NBI history. Ipsos. https://www.ipsos.com/en/nation-brands-index-2023
Theodoropoulou, I., & Tovar, J. (2020). Introduction. In Research Companion to Language and Country Branding. Routledge.