Servicing Canada’s economic transition

The word “transition” often comes up in discussions of the economic environment in Canada. This will take getting used to because this transition will likely operate over several years. Taking advantage of the depreciation of the dollar, the external sector currently plays its expected role. However, in the longer term, Canada will not build on traditional sectors such as manufacturing, as was the case until the early 2000s. This being said, Canada has several comparative advantages that could make it a competitive force at a global level, in terms of exports of services. Once the indirect effects are taken into account, services play a non-negligible role in exports.