Being one of the biggest global economies, Canada is already highly developed. According to the most recent World Bank estimates, the nation’s annual gross domestic product has reached trillions. This put Canada on the list of countries with the greatest economies.
However, there is no denying that the Great White North can still continue to grow its global economy and get even bigger in the years to come, especially as there are many industries that are still burgeoning with plenty of growth potential and can bring in significant amounts of revenue to the North American country.
Canada: Economic Outlook
The export and import of products and services account for almost one-third of Canada’s GDP, demonstrating the country’s economic dependence on international trade. Other highly developed nations contributing to the nation’s GDP are trading partners. The Canadian economy is well boosted through a variety of channels.
The ability to produce the most income or production per unit of labor input determines a nation’s labor productivity, ultimately determining the standard of life in that nation. A country’s capital intensity, the quality of its labor force, the adoption of cutting-edge technology, the realization of the size of the economy, and its prowess at redistributing capital and labor among businesses and industries to maximize value are all factors that affect labor productivity.
The standard of living in Canada has historically been high compared to many other nations. The majority of that may be attributed to many significant industries. Some also contribute significantly to Canada’s high-income levels and tax receipts, which sustain the country’s top-notch systems.
Which industries can still play a role in boosting Canada’s taxes in the future?
As mentioned, there are a handful of different industries that currently operate in Canada that can still provide the country with plenty of tax income in the near future, with each of them yet to have really reached their full potential.
These include industries such as green energy, food production and processing, iGaming, aerospace technology, and digital health.
1. Green Energy
With the rise of renewable energies in many countries worldwide, Canada can take advantage by introducing more green energy initiatives to solve its own environmental issues while simultaneously boosting its economy with additional tax income.
2. Food Production and Processing
Canada’s food industry is already huge, but it can become even larger as newer technologies develop that make food handling much more efficient. This will create new jobs in this field and help to expand the economy.
The iGaming industry is one sector that has shown that there is plenty of potential for growth in the Great White North. With several new laws recently passed that has subsequently allowed for some of the top Canadian online casinos to emerge in the space and provide players with the ability to enjoy their favorite games and enjoy a range of bonuses safely and securely, this sector is likely to expand significantly over the next few years and become a major contributor to taxes as more and more decide to participate in this popular gaming activity.
4. Aerospace Technology
As aircraft technology continues to evolve, so will the aerospace industry. Canada can take advantage of this by exploring opportunities in research and development and creating new jobs related to the field.
5. Digital Health
As digital health technologies continue to be developed, Canada can benefit from creating new infrastructure and services related to this field that will help save lives and improve overall health. This can also create jobs within the country, as well as help generate extra tax incomes.
While the five industries outlined above are far from a complete list, these are just five of those that are rather easy to spot throughout the country that can help increase the taxes generated.
Canada is home to multiple thriving industries.
Naturally, given that the Great White North is a powerhouse in regard to the size of its economy, it does not come as a surprise to find that there are a number of different industries located within the country that is already booming and providing the country with high revenues in the form of taxation.
1. Commercial Banking
The Canadian commercial banking sector has grown recently despite reduced interest rates and periodic slowdowns in economic growth. Banks have excelled in overcoming constraints brought about by low-interest rates and escalating restrictions by diversifying their sources of income. In addition to earning money from non-interest-bearing sources like fees for a range of services and commissions, the industry also makes money largely from interest-bearing sources like commercial loans and mortgages.
The manufacturing industry in Canada has been a major contributor to the nation’s economy for many years. The sector includes automotive, mining and metal production, textiles, chemicals, aerospace products and equipment, forestry products, food processing, and more, meaning a variety of goods are produced.
3. Real Estate
Real estate is also a significant economic driver of the Canadian economy and is responsible for generating billions of dollars in taxes each year. The industry plays an important role in creating jobs in Canada and aiding in job stability. It also contributes to local investment opportunities and creates new business opportunities.
4. Petroleum Refining
Over the past few years, the Canadian Petroleum Refining Industry’s revenue has fluctuated. Because crude oil is a key component of most industrial goods, its price is a major factor in how much money the sector makes. As a result of rising oil prices, revenue increased in the years prior to the reporting period. However, after reaching a peak, industry revenue started to decline gradually. This trend continued until the global price of oil collapsed in 2016, resulting in significant industry revenue declines. The industry experienced a double-digit recovery over the next two years thanks to a subsequent pricing recovery in 2017 and is now estimated to be worth around $49 billion in terms of market size.
Medical and surgical hospitals are part of Canada’s health sector, which has shown steady growth in recent years. This growth is expected to continue through 2023 as highlighted before with improvements in the digital health industry expected to be achieved. With the public sector providing over three-quarters of the money and the private sector providing the remaining portion, Canada’s healthcare system is primarily public. Because of this, the sector is very dependent on both federal and provincial financing, which is often distributed through systems known as “global budgets,” which assign a provider with a predetermined payment amount to cover operating costs for a set period of time.
Canada’s taxation streams are in a good place
Canada is in a good position in regard to its taxation streams, and with the growing number of industries outlined above, they are likely to stay that way. These five industries have all played an integral role in helping Canada maintain a healthy tax base and as more new industries develop and expand over time including the five outlined earlier, we can expect further economic growth and stability throughout the country.
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