When the term “exports” is mentioned, most individuals immediately associate it with tangible goods. However, the rapidly expanding service sector plays a substantial role in the Canadian economy. To be precise, service exports reached $161.2 billion in 2022, constituting 12.1% of Canada’s gross domestic product (GDP).
The exportation of services not only enhances the international footprint of Canadian businesses but also serves as a robust catalyst for job creation, demonstrating a swift recovery from the challenges posed by the COVID-19 pandemic.
A service export refers to any service offered by an individual or business in one country to a recipient in another country. Canada, for instance, generates numerous services that are eventually sold to customers worldwide, encompassing activities like product design, marketing, tourism, software development, logistics support, and financial services.
Interestingly, many entities engaged in exporting goods also fall into the category of service exporters, particularly if their products include post-sale services like installation, maintenance, training, and knowledge transfer. Given the importance of proximity to customers for the success of these services, an increasing number of companies in the service sector are establishing local footholds in international markets. Notably, the global sales volumes of Canadian service enterprises have experienced a compound annual growth rate of 12%, which is twice the growth rate of goods (6%) between 2012 and 2020.
Learn more here: https://www.edc.ca/en/article/service-exports-boost-canadian-economy.html
