Forecast: Financial Service Activities Output in Canada

The financial services sector in Canada has demonstrated a steady upward trend over the past decade, achieving a remarkable overall growth. As of 2023, the output stands at CAD 217.33 billion. Between 2013 and 2023, the sector reported consistent year-on-year growth, with the exception of a minor contraction in 2020, likely due to the economic impact of the global pandemic. The compound annual growth rate (CAGR) over the past 5 years up to 2023 has been modest at 1.93%, indicating a steady yet moderate pace of expansion.

Looking forward, the forecast data from 2024 onwards suggest continued growth in the financial services output, with an anticipated CAGR of 1.52% over the next five years. This indicates a stable growth trajectory, albeit at a slightly slower rate compared to the previous years. By 2028, the sector is expected to reach a value of CAD 239.13 billion, representing a 7.82% total growth from 2023.

Future trends to watch for include:

• Technological advancements and digital transformation within the financial services sector, which could drive efficiency and innovation.
• Regulatory changes and their potential impact on market operations and compliance requirements.
• Evolving consumer preferences towards digital banking and financial services, influencing service delivery models.
• Global economic conditions and geopolitical developments, which could impact financial markets and investment flows.