Canada

Canada is the largest country in the western hemisphere and one of the largest in the world. Located in the northern part of North America, Canada extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean. It has a stable government, a skilled workforce, and its residents enjoy a high standard of living. The country has a well-developed transportation system and is rich in natural resources. Canada's official languages are English and French, and Ottawa is its federal capital. A parliamentary democracy, the country is divided into ten provinces and three territories. The official currency is the Canadian dollar (CAD).

Canada has a thriving free-market economy, with businesses ranging from small owner-managed enterprises to multinational corporations. Canada's economic development was historically based on the export of agricultural staples, especially grain, and on the production and export of natural resource products, such as minerals, oil and gas, and forest products. However, secondary industry has evolved to the stage where Canada ranks as one of the top manufacturing nations of the world. The service industry has also expanded rapidly and has transformed the Canadian economy from one based primarily on manufacturing to one with a significant service-based sector. Canada is among the world's major trading nations, with the United States (US) its primary trading partner.

Canada has abundant natural resources, a skilled labour force, modern capital plant, and a strong banking system, but the volatility of crude oil prices has taken a considerable toll on the oil and gas sector and the country’s overall economy. A lower Canadian dollar in recent years has encouraged growth in Canada’s manufacturing sector, with higher exports to the United States.

The Canadian economy has generally recovered quickly from its temporary contraction during the COVID-19 pandemic. Interest rates, which were reduced sharply in March 2020, with the intent of limiting the economic fallout created by the pandemic, rose quickly from March 2022 to July 2023 and then held steady until June 2024, as the Bank of Canada tried to curb the high inflation rates faced by consumers. Interest rates have recently started to decrease as inflation rates have started to stabilise. Canada's employment rate and gross domestic product (GDP) have recovered to (and generally surpassed) pre-pandemic levels, signalling positive economic strength and defying expectations of a recession. With the recent election of Donald Trump as the next US president and knowing that the Republicans will control the US Congress, it is expected that the incoming US administration will have many policy changes (e.g. trade and tariffs) that will affect Canada's economy; Canadian businesses will need to proactively monitor US policy changes to help guide their business strategy. For a discussion of how the 2024 US election results could affect Canadian businesses, see our Insights and Blog.

In Canada, PwC has more than 7,700 partners and staff in locations from St. John's on the Atlantic coast to Vancouver on the Pacific. With more than 110 years of excellence in Canada, we provide industry-focused professional services, including audit and assurance, tax, deals, and consulting targeting solutions for cybersecurity, privacy, financial crime, workforce of the future, finance transformation, value creation, strategic reassessment, and cost optimisation. PwC in Canada works with companies of all sizes and in all industries to help tailor solutions using local knowledge and global experience. We work as one firm to provide quality services and products that help solve important problems.