The biggest growing industries in Canada in 2023
For many of the world's biggest economies, 2022 won't be one to look back on fondly. It was a turbulent economic landscape, characterized by high inflation levels, consumer uncertainty and stagnant monetary policy, such as high-interest rates.
Given the scale of Canada, economically speaking and in terms of land mass, it is no surprise that various industries are growing at a solid rate, even in the face of such economic uncertainty.
In some instances, economists and analysts will often look at specific industries which some claim are "recession-proof". Likewise, experts often use the term "recession-proof" in the media.
Despite the term’s frequent use, no industry is truly recession-proof. Whenever people's disposable income drops, so does their ability to purchase goods or services.
Even in the case of essential goods and purchases, such as electricity, gas, food and petrol, revenue is still declining, especially when coupled with inflation and supply chain issues.
The film industry is one sector labelled as "recession-proof", as is the casino sector. Companies like comeon.com are robust and profitable, with solid business models, but just because they provide a high-class entertainment service doesn't mean they don't feel the pinch like everyone else when times get tough.
It is not all doom and gloom though, plenty of industries can still turn a profit, even when there is a recession. Today, we will look at some of those industries in Canada.
Cryptocurrency is one of the newest industries where investors have made a substantial profit. This market is incredibly volatile, and as it is largely unregulated unlike the stock market, there is also the potential for huge losses.
Canada, alongside other countries such as the United States, Japan and the United Kingdom, has been a front-runner in this industry for over a decade.
Some of these countries, such as the SEC in America, are looking to hit the industry with regulations and slow down its momentum. However, overall, cryptocurrency and blockchain technology remain growing industries in Canada.
Prominent cryptocurrencies such as Bitcoin and Ethereum are highly sought-after by investors. As a result, Canadian developers and investors are helping this industry grow in Canada. As people look for alternative investments instead of traditional tools provided by centralized banking, Bitcoin has become a trillion-dollar asset.
As a result, cryptocurrency will likely continue to grow in popularity, and it remains one of the top-growing industries in Canada at the moment.
Technology and electronics
Another growing industry, despite some of the economic uncertainty in Canada, is the technology and electronics sector. Primarily this involves companies that specialize in designing semiconductor machinery. Semiconductors are used in creating a wide range of devices, including gaming consoles and PCs.
However, the industry is growing due to the demand for electric vehicles, cameras and high-spec graphics cards. Investment also continues to flow into SMEs in Canada, so plenty of businesses within these industries continue to expand and profit even in the current climate.
Travel and tourism
Surprisingly, the appetite for travel and travel agents has spiked in Canada. The market itself grew last year while plenty of others struggled.
Travel agents have struggled due to the rise of the internet. The reason is that it is much easier and cheaper for customers to do it themselves. They don't need somebody in the middle to research, book and plan their vacations for them. They can do it all themselves online from home.
Travel agencies do offer convenience though, and some of the positives are often overlooked. This includes the automatic insurance and cancellation refunds you receive when you book through an agency. Also, some people prefer to spend less time booking hotels, paying booking fees, researching tours and e-mailing or phoning airline companies.
Paying a travel agency is a one-off fee, and they do all this for you. Although this industry peaked in the days before the internet, it is currently one of the fastest-growing industries in Canada.
Another reason economists have cited for this uptrend is that the lockdown brought this sector to its knees. Of course, many industries felt the pain of having no customers and locking down, but the travel industry stopped overnight.
Any growth these companies are experiencing may just be prior customers coming back through the door as the economy opens up again. The figures can't be argued with though, and other industries that ultimately had to shut down have yet to see the same resurgence, so that argument can only go so far.