SWOT Analysis of Canada (national SWOT)
This is a comprehensive SWOT analysis of Canada (national SWOT). Surely, it is not hard to see why Canada is one of the most interesting countries in the world. With its diverse and impressive history, beautiful landscapes, and friendly people – this country has it all. However, it faces some challenges as well.
Strengths of Canada
Canada has an incredibly rich history, which dates back to the first inhabitants of North America. Amongst these indigenous people are the First Nations and the Inuits. It is now a multicultural country, which is evident in its culture and language. It is an officially bilingual country, with two official languages: French and English, though most people speak English. It was in fact the first country in the world to adopt a multiculturism policy to acknowledge that all cultures bring intrinsic value (The University of New Mexico, 2021).
Canada is widely known for being welcoming to immigrants from all over the world. This allows the newcomers to create their own unique cultures within the country without fear of judgement or prejudice.
Canada takes pride in its diverse natural resources and enjoys taking advantage of them. It has an abundance of oil reserves, coal deposits, and potash mines. This along with many other resources allows it to have a stable economy as well as an energy-efficient society.
Canada is one of the top 10 economies in the world. It shares border with the USA, hence a proximity to the U.S. market. Like its political stability, its economic environment is stable as well. It has a massive banking sector, and it is also one of the top oil and gas producers in the world.
Canada has some world-class universities with highly skilled academics and students. The top universities are University of Toronto, University of British Columbia, McGill University, McMaster University, University of Montreal, University of Alberta, and University of Ottawa (Times Higher Education, 2022).
The government of Canada has taken on some admirable initiatives that have made the country one of the best in the world. Examples include health care, education, and climate change initiatives.
Weaknesses of Canada
The discussion on weaknesses is a key part in the SWOT analysis of Canada (national SWOT). It goes without saying that Canada is one of the most interesting countries in the world, due to its vast natural resources, diversity, and friendly people. However, it also has a lot of problems that it must overcome if it is to progress further.
Canada’s biggest challenges are related to its economy which is heavily dependent upon the U.S. economy. If the U.S. economy stumbles, so does the Canadian’s one. Furthermore, because of its share of border with the U.S., the shipments of Canadian goods to other markets become very expensive.
Another problem is the loss of competitiveness of manufacturing companies due to low labour productivity (Coface, 2022). In addition, 23% of the population will be aged 65 or over by 2030 potentially creating shortages of labour.
Because of the local and global lockdowns, the government of Canada offered financial support for individuals and businesses. However, this has led to an unprecedented surge in public debt. The federal debt was expected to approach $1.2 trillion in 2021 (Rendell, 2022). Similarly, the country is not building enough houses to keep pace with population growth, particularly in major cities such as Toronto and Vancouver.
Opportunities for Canada
The opportunities for Canada are vast. For instance, its top exports such as crude petroleum, cars, gold, and vehicle parts mostly go to the USA, China, the UK, Japan, and Mexico. Increasing exports to these nations and exploring other international markets should boost the economy well.
Canada has a large population of immigrants, who contribute to the economy in many ways, including through their spending power. As it is widely seen as a welcoming nation, it should be able to attract more highly skilled migrants and other foreign talents particularly at a time when developed economies are in fierce competition with each other to get the best talents from the international markets.
The food industry is booming in Canada. Other industries growing fast are Concert & Event, Campgrounds & Recreational Vehicle, Scheduled Air Transportation, Hotels & Motels, Tour Operators, Aircraft, Engine & Parts Manufacturing, Amusement Parks & Arcades, Oil Drilling & Gas Extraction, Ski & Snowboard Resorts, and Movie Theatres (IBIS World, 2022). In addition to catering to the domestic needs, these industries can also attract foreign investments.
Threats to Canada
Threat is the final part of this SWOT analysis of Canada (national SWOT). One of Canada’s most pressing economic threats is the global recession. The U.S., Canada’s largest trading partner, went into deep recessions in the past. That had a direct impact on Canada causing it suffering from decreasing exports and an increase in unemployment rates.
Canada’s economy is also threatened by the country’s high household debt and low savings rate, which leave many Canadians vulnerable to economic shocks. Many households often take on large mortgages compared with their income.
Climate change and its effects, cyber security breaches, increasingly uncertain world affairs, and other international risks are also major threats to the Canadian national security.
Hope you have liked this SWOT analysis of Canada (national SWOT). If you have liked it, please share it with others to support our work. You may also like:
Last update: 23 February 2022
Coface (2022) Canada, available at: https://www.coface.com/Economic-Studies-and-Country-Risks/Canada (accessed 21 February 2022)
IBIS World (2022) The 10 Fastest Growing Industries in Canada, available at: https://www.ibisworld.com/canada/industry-trends/fastest-growing-industries/ (accessed 21 February 2022)
Rendell, M. (2022) The 12 key economic challenges facing the next government, available at: https://www.theglobeandmail.com/politics/article-12-challenges-facing-the-next-government/ (accessed 23 February 2022)
The University of New Mexico (2021) What we can learn from Canada’s Multiculturalism Policy, available at: http://news.unm.edu/news/what-we-can-learn-from-canadas-multiculturalism-policy (accessed 23 February 2022)
Times Higher Education (2022) Best universities in Canada 2022, available at: https://www.timeshighereducation.com/student/best-universities/best-universities-canada (accessed 22 February 2022)
Author: Joe David
Joe David has years of teaching experience both in the UK and abroad. He writes regularly online on a variety of topics. He has a keen interest in business, hospitality, and tourism management. He holds a Postgraduate Diploma in Management Studies and a Post Graduate Diploma in Marketing Management.