Global supply chain conditions are changing, with China at the centre: What will this mean for Canadian farmers?
China is home to nearly 1.5 billion people and is the world’s second largest economy, valued at USD$17.74 trillion in 2021. Canada’s agri-food exports to China represented almost CAD$9.4 billion in 2020, an increase of 43.3% from 2019. While China’s continued growth has been beneficial for exporters and significantly alleviated its domestic poverty rates metrics, the pace of its growth has also left some behind. Moreover, while its historical growth rate has been quite high, its potential growth may slow, with trade implications for exporters like Canada. These implications may be compounded by an increasingly inward-facing approach to development, as well as several key structural factors, including access to food, energy, and healthcare; an ageing population; and food security concerns. Due to the nature of today’s global supply chain, any instability in China has potential risks for its trade partners.
Markets:
Market Disruptions
Posted Date: March 10, 2023
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