For the first time, the Canadian economy has surpassed the US in a ranking of the world’s most competitive economies. Despite the ongoing crises caused by the Covid-19 pandemic, Canada manages to pull out a win, all because of the intensified trade war between the US and China.
Economic headwinds are gathering in Canada as lockdown restrictions are lifted and business activities resume in the country. Canada proudly sits at 8th position this year in Swiss-based business school IMD’s annual ranking, jumping from 13th in 2019. The United States, on the other hand, dropped seventh spots on the list to settle at 10th this year from 3rd in 2019. The majority of countries that are in top 10 are relatively smaller economies that emerged stronger amid the pandemic through their economic competitiveness.The trade war between the US and China damaged the US’s economy, reversing its growth trajectories and putting it in the worst position in terms of economic ranking. On the contrary, Canada moved up and scored higher in the survey, due to the country’s open welfare state.
Canada’s noteworthy economic performance can also be attributed to the way Canada deals with so many things in a transparent manner. The country is globally-oriented, has huge investment opportunities, and is competitive in various ways. Canada could retain the 8th position because of its global competitiveness and its ability to sustain long-term economic growth and ensure the well-being of its citizens.