OUR GEOGRAPHIC COVERAGE

North America (U.S. and Canada)

North America has witnessed an expedited progress over the recent years, led by the U.S. and Canada. The region remains economically strongest globally, in which both nations have represented flexibility through structural shifts, trade integration, and investment in technology and human capital. The U.S. contributes to the region’s progress through a diversified economy driven by consumer spending and continued innovation in sectors such as technology, healthcare, energy, and defense. Canada’s economy is also closely integrated with the U.S. through trade, with strengths in natural resources, manufacturing, and financial services. North America commands a powerful economic position, with its GDP reaching an estimated USD 36.4 trillion in 2026, representing 17.5% of global GDP, and a high GDP per capita of about USD 69,770, underscoring the region’s strong productivity and living standards.

North America: GDP per Capita Growth Trend (Current USD)
 

U.S.

The U.S. is identified as the world’s diverse and resilient economy, driven by innovation, trade, and a strong labor sector. In the third quarter of 2025, the U.S. economy grew at 4.3% at an annual rate, which marks a up from 3.8% in the second quarter. This increase in real GDP was primarily driven by stronger consumer spending, higher exports, and increased government expenditures. These figures also represent the initial estimate for economic activity from July through September 2025, providing insight into the nation’s stronger economic momentum.  The U.S. economic performance is the representation of a diversified industrial base that spans services, technology, manufacturing, and exports, with extensive support from robust consumption and innovation. Despite the moderation from the past few years, inflation remains close to target, and the market continues to show resilience, reinforcing the country’s central role in the global economy.

Labor Sector

• In the U.S., the labor sector is relatively strong, with the unemployment rate at 4.6 % in late 2025, which is down from peaks seen during the pandemic, thus reflecting continued job availability. The labor force participation rate was 62.5 %, which indicates a steady share of working-age adults who were involved in the workforce. Employment growth in the country has witnessed steady progress over recent years, with sectors such as healthcare, technology, and professional services leading. The wage growth is also consistently progressing, extending its support to household income and consumer spending in the country.
• The nonfarm payrolls are expanding, even though job growth has been moderate, with monthly additions such as 64,000 jobs in the fourth quarter of 2025, reflecting persistent employment gains. Meanwhile, the aspect of wage trends shows moderate growth in earnings, wherein the median weekly wages displayed around USD 1,214 in the third quarter of 2025, implying that wage increases are gradually keeping pace with labor market conditions. In addition, the demand for a skilled workforce remains intense, especially in sectors of technology and healthcare, hence reflecting the strongest contributors to consumption growth, aligning with the rising demand for skilled labor.

Source: Bureau of Economic Analysis

Semiconductor Sector

• The U.S. in the semiconductor sector is progressing exponentially, fueling both innovation and economic growth. The country holds a 50.4% share of the worldwide chip industry, and it exported USD 57.0 billion worth of semiconductors in 2024, ranking sixth among U.S. exports overall. Semiconductor exports also grew by 13% during that year, which reflects strong demand and solidifies the industry’s international standing. The U.S. has witnessed rising domestic investments and expanding production capacity, where the sector is projected to see unprecedented growth over the upcoming years, boosting U.S. economic contributions.
• The Biden-Harris Administration made an investment of over USD 5 billion in 2024 through the CHIPS and Science Act with a prime focus on advancing U.S. semiconductor research, development, and workforce initiatives. Central to this effort is the National Semiconductor Technology Center, which is a public-private consortium that will support innovation, prototyping, and training for a skilled workforce. In addition, there were additional investments in the same year, which include USD 200 million for a CHIPS Manufacturing USA Institute, USD 300 million for advanced packaging R&D, and over USD 100 million in the CHIPS Metrology program, with a collective goal of strengthening U.S. leadership in semiconductor technology.

Research and Development

• R&D plays a crucial role in shaping the country’s economic progression, especially in terms of business research and development. Both the established and emerging entities in the U.S. invested a total of USD  722 billion in R&D in 2023, which is an increase of 4.4% from 2022. This spending supports innovation across basic research (USD 43 billion), applied research (USD 110 billion), and development (USD 568 billion). Meanwhile, the manufacturing industries contributed the majority, i.e., USD 394 billion, 55% of domestic R&D, mostly funded internally, whereas the non-manufacturing industries accounted for USD 328 billion, i.e., 45%, highlighting broad industrial engagement.
• In addition, this aspect of business R&D fuels both economic output and employment, wherein the companies reporting USD 14 trillion in domestic sales and employing 23 million people, including 2.1 million allocated to R&D. Among R&D staff, researchers made up 68%, with technicians and support staff accounting for the remaining portion. Men represented 70% of R&D employees, while women were more prevalent in non-manufacturing roles. Further, the intensity of overall R&D was 5.1% of sales, in which the semiconductors led with 25.8%, pharmaceuticals displayed 17.8%, and scientific research services 21.5%, underscoring sector-specific innovation leadership.

Clean Energy & Renewables

• The energy sector is yet another asset for the country, which is rapidly expanding on account of record growth in renewables, battery storage, electric vehicles, and domestic manufacturing. The solar capacity surpassed 220 GW after adding 39.6 GW in 2024. Meanwhile, the battery storage nearly doubled to 29 GW, extending its support to grid reliability. Renewables currently make up 30% of large-scale power capacity, and carbon-free sources, which include nuclear and geothermal, supply nearly 44% of electricity.
• The EV sales and manufacturing are at a surge, with which the sales of electric vehicles set a record at 1.3 million in 2024, accounting for 8.7% of new cars. Simultaneously, the EV charging infrastructure also expanded with 37,700 new ports, including 12,500 fast chargers. Domestic clean energy manufacturing boomed, with 160 new or expanded facilities announced, thereby creating 100,000 jobs and USD 500 billion in investment, including solar module and silicon cell production, strengthening the U.S. clean energy supply chain and supporting energy independence in the years ahead.

International Trade and FDI

• The U.S. is the world’s second-largest trading nation, which has reported more than USD 7 trillion in combined exports and imports of goods and services in 2022, and is a leading source and destination for foreign direct investment. The country’s economic integration supports lower inflation, greater product variety, innovation, productivity, while also aiding in terms of climate goals. Policymakers in the country need to manage distributional challenges, as trade can disproportionately impact certain workers and communities.
• The ever-increasing investments from foreign companies are the fundamental driving factor for the country’s business growth. In 2024, foreign direct investment in the U.S. totaled USD 151 billion. Most of these investments were directed toward acquisitions of existing businesses in the country, continuing a long-standing trend. In a span of a decade, the yearly average of USD 277.2 billion, these investments remain a major catalyst of U.S. economic growth, innovation, and global business integration.

Information Technology

• The U.S. has undergone significant transformations in the IT sector over the last four decades, where the progress of productivity in the country’s private business sector has been highly concentrated in the information technology sector. It contributed around 45% of total factor productivity growth despite representing only about 8% of private business sector value added. Its TFP grew at an average annual rate of 2.9%, vastly outpacing non-IT sectors. This highlights the outsized influence of IT on U.S. economic growth, with sectors such as software, data processing, telecommunications, and computer manufacturing leading efficiency gains.
• In cumulative terms, the IT sector’s real value added increased by more than 2,300% in recent decades, whereas the prices of IT value added reduced by around 70%, keeping its share of the economy relatively stable. Despite the productivity achievements, IT’s share of nominal gross output rose only to about 7.9%, showing that innovation and efficiency, rather than sheer scale, have fueled its contribution. Hence, IT remains highly essential for future U.S. growth, especially with the evolution of AI and many more technologies.

Canada

Canada continues to solidify its position in the global economic landscape, backed by the burgeoning government investments, especially in the defense & healthcare sectors, trade balance, and the capital projects aimed at boosting productivity and living standards. Currently, the country navigates through a very complex environment of trade volatility and structural adjustment. Domestic activity is being majorly sustained by notable consumer demand and a resilient labor sector, even as business investment remains tempered by uncertainty surrounding the international trade agreements and cross-border tariff pressures.  The country also benefits from abundant natural resources, such as energy, mining, and forestry, which efficiently support exports and domestic growth. Meanwhile, Canada’s GDP in 2024 surpassed a total of USD 2,243,636.83 million (current USD), reflecting the country’s overall economic output.

Canada’s GDP Growth Trends and Economic Performance

Clean Energy

• Canada’s clean energy sector is focused on transitioning from fossil fuels to renewable energy sources, including wind, solar, and hydro, by promoting sustainable economic growth.  In this context, the country’s government, through NRCan in collaboration with ESDC, is advancing comprehensive action to ensure the net-zero transition creates fair and well-paying jobs. The proposed 2023-24 legislation on sustainable jobs aims to establish a strong federal framework, whereas the efforts are designed to foster long-term opportunities while supporting an inclusive and equitable economy across the country.
• To support diesel-reliant communities in adopting clean energy, the country has launched the Indigenous and Remote Clean Energy Hub, which is co-managed by NRCan, ISC, and CIRNAC, with support from ECCC and INFC. Through this Clean Energy for Rural and Remote Communities program, NRCan will provide USD 233 million until 2027 for projects reducing fossil fuel use for heat and power in Indigenous, rural, and remote areas, hence generating sustainable jobs, fostering local economic growth, and making it suitable for net-zero and climate goals.

Agriculture & Agri-food

• The country produces a variety of crops, mainly through the agri-food sector, with strong exports of processed food & beverages. This sector employed around 2.3 million people in 2024, providing one in nine Canadian jobs, and generating USD 149.2 billion, which is about 7% of GDP. Primary agriculture includes farms, nurseries, and greenhouses, which cover 62.2 million hectares with 189,874 farms. Simultaneously, food and beverage processing transforms raw materials into finished or semi-finished products, employing 318,400 people and contributing USD 35.8 billion to GDP, extending its support for both rural and urban economies across the country.
• The sector is extremely divergent across major commodities and regions. Top crop and livestock outputs in the country are grains, oilseeds, dairy, red meat, poultry, and horticulture products, reporting provincial variations such as Alberta’s cattle and canola, Ontario’s vegetables and dairy, and Quebec’s dairy and hogs. Food processing is Canada’s largest manufacturing sector, accounting for 17.2% of manufacturing GDP and 17.6% of jobs. Leading processing industries in the country are meat, dairy, grain, and oilseed milling, bakeries, and other food products.
• Canada is a frontrunner in the agri-food sector, which exports around USD 100.3 billion in agricultural and food products in 2024 to over 200 countries, ranking ninth globally. The U.S. is the largest trading partner, representing nearly 62% of exports, closely followed by China. Meanwhile, the residents of the country spent USD 213.6 billion on food, beverages, and related products in the same year. The sector also benefits from abundant land and water, research capacity, environmental stewardship, and a strong reputation, positioning Canada for sustainable growth in food production and processing in the upcoming years.

Manufacturing

• Canada’s economic growth trajectory is significantly influenced by the manufacturing sector, with revenues and shipments gradually increasing. The sector witnessed the revenues rise to USD 874 billion in 2023, up 1.3% from 2022, whereas the value-added fell to USD 311.4 billion, down from USD 322.1 billion. This suggests that even though production continued, efficiency pressures and operational challenges reduced the sector’s contribution to the economy slightly. The slowdown highlights a sector balancing cost pressures with output demands in a rapidly changing economic environment.
• The costs are yet another key aspect in the country’s manufacturing industry, which has materials and supplies spent at USD 543 billion and energy, water, and vehicle fuel costs at USD 18.3 billion in 2023. During the same time, the manufacturing intensity ratio fell from 37.3% to 35.6%, which indicates a reduced efficiency relative to revenue. Therefore, these figures show that even though the total revenues displayed progress, the aspect of operational pressures and resource costs is shaping the sector’s performance, underscoring the importance of productivity improvements and cost management for future growth.

Trade Diversification

• Canada is proactively expanding its worldwide trade network through its export diversification strategy, with a prime focus to increase overseas exports by 50% through 2025. The country leverages 15 free trade agreements, including CUSMA, CPTPP, and CETA, covering 49 countries, along with 36 foreign investment promotion and protection agreements. Canada is creating encouraging opportunities for both exporters and investors. The strategy encourages residents in the country to reach new markets and strengthen the country’s position as a connected, stable, and competitive hub for international trade.
• Furthermore, to support exporters, Canada also provides a range of tools and resources, which include trade commissioners in more than 160 cities worldwide, funding for entering new markets, trade missions, and the Canada Tariff Finder. Programs are also focused on inclusive trade for women, Indigenous, LGBTQ2, and youth entrepreneurs. Ongoing negotiations with emerging markets such as ASEAN and Mercosur readily enhance opportunities, ensuring proper access to international networks and financial support to succeed in diverse and growing international markets.

Government Fundings & Incentives

• The country’s government is focused on continued funding programs as the centralized driver to support business growth, innovation, and international competitiveness. In this context, the SR&ED tax incentive is expected to become even more generous, with enhanced credits for Canada-controlled businesses and expanded eligibility for public corporations, supporting more than 22,000 firms in R&D activities as of 2024 data. The government also aims to unlock private and pension fund investment that includes USD 45 billion for AI data centres and USD 1 billion for venture capital initiatives. Measures will improve access to capital for mid-sized companies and attract more investments in infrastructure such as airports.
• In addition, Export Development Canada plays a central role in helping businesses in the country to diversify into new markets. It was built on the USD 5 billion Trade Impact Program, which was launched in March 2025 and provides trade credit insurance, export guarantees, and foreign exchange support to ease uncertainty and reduce costs for exporters. Budget 2025 sets a target to grow total business facilitated by EDC by USD 25 billion by the conclusion of 2030, focusing on strategic sectors such as critical minerals, clean technology, energy, infrastructure, and defense, hence contributing to the overall economic growth in the country.