As we move through 2022 many countries around the world are starting to take stock of where their economies are heading. Canada is no exception, but where it does differ from many is that the outlook is relatively optimistic with growth predicted in several areas.
Some of these are obvious, like renewable energy, others are more surprising like the iGaming sector fuelled by the popularity of games like online blackjack, roulette and slots. They also cover a range of very different sectors, as we shall see.
Looking at the economy in general, figures released in March 2022 showed that, on an annualized basis, it grew by 6.7% in the last three months of 2021. This outstripped the 6.5% predicted by analysts and the Bank of Canada.
A number of factors are set to see this trend continue into this year with a major one being the high price of oil and the squeeze on Russian supplies following that country’s invasion of Ukraine.
Numerous sectors are set to do especially well over the coming months with the following five having been singled out for special attention. And, with the Canadian Dollar continuing to perform strongly against the world’s other main currencies, the general outlook is excellent.
You only have to look at the projected growth of e-commerce sales in Canada to see that it’s earned its place among our list of booming sectors. This is pretty much in line with most other countries around the world with developed economies and good delivery infrastructures.
Naturally, it’s driven by consumer behaviour and the changing shopping habits of Canadians have been well documented. It’s also a sector whose success radiates outwards and creates more business for everyone from delivery services to software developers as well as to the makers of the products themselves.
The combination of the cheaper prices that e-commerce retailers can offer thanks to lower costs and the sheer convenience of being able to shop from home should continue to create strong demand.
E-commerce is a growing industry in Canada, with retailers such as Amazon seeing a huge boost in sales.
Online casinos and other forms of gambling have been one of the most phenomenal success stories of recent times with the industry being worth over US$60 billion a year worldwide.
Canada is quickly catching up with other countries like the UK and Australia where it makes a significant contribution to the economy and new legislation is expected to accelerate the process. This is because Ontario is set to issue licences to a number of overseas operators to run online casinos in the country, 20% of whose profits will be claimed in tax revenue.
There has also been a move to transform sports betting to allow wagers to be placed on single events. This is certain to attract an increasing number of sports fans to participate in the activity into 2022 and beyond.
Alongside many other countries, Canada has an ageing population with people living longer, and needing more care, than ever before. Government estimates predict that by 2030 9.5 million Canadians will be over the age of 65 making up nearly a quarter of the population.
Already, the primary healthcare sector is readying itself. As a result, there are plentiful job opportunities for healthcare workers at every level. A particular focus will be on the care of the elderly as well as dementia services.
It’s also going to secure the future of related industries such as pharmaceuticals, medical equipment manufacturers as well as the designers and makers of mobility aids.
Naturally, the younger elements of society will also continue to need primary care services too as they, themselves, advance in age.
There’s an unwritten principle that, in uncertain economic times, gold makes for an even better investment than ever. While it’s no longer the commodity that many currencies link their value to, it’s still very much in demand.
Canada is fortunate to have considerable reserves and produces around 180 tonnes each year. This is a figure that has been steadily increasing over time and has shown an almost 90% rise over the amount that was being mined as recently as 2012.
The precious metal mining industry as a whole grew by 6.4% over the five years between 2015 and 2020. And, as worldwide demand continues to increase, mining is likely to follow suit in order to meet it.
Gold is still in high demand and Canada have the capability to mine and produce Gold.
Arguably, there has never been a more pressing time for the world to minimise its carbon-based energy demands. But there is no debate that renewable energy will be a vital element in achieving this.
Already, Canada derives around 17% of its energy using the elements of air, sun and water and ranks around 7th in the world in the line-up of producers. Huge investments is being made to improve on this already notable achievement.
The country is lucky to have considerable natural resources to exploit with hydro-electric power leading the way. Looking ahead, even more attention is likely to be paid to developing wind and solar farms that will be needed if it is to achieve its commitments which include producing zero emissions by 2050.
There are many other sectors that are looking nearly as hopeful as the five that we’ve listed here for growth over 2022 and beyond. Obviously, in a changeable world nothing can be guaranteed but there are good reasons for confidence. So, with a little luck and a great deal of commitment, success should certainly be on the cards.