Markets
The Economic Impact of North America’s Most Vital Trade Corridor
The Impact of North America’s Most Vital Trade Corridor
Long before highways and railroads covered the vast expanses of North America, crucial trade was conducted through the towns and outposts located along the shores of the Great Lakes and the St. Lawrence River.
This region is integral in both U.S. and Canadian histories, and it’s still the most vital trade corridor in North America today. In fact, every year 230 million metric tonnes of cargo pass through these important waterways, and it’s estimated that an impressive 30% of total U.S.-Canada economic activity takes place in the broader Great Lakes region itself.
Today’s infographic comes to us from the Chamber of Marine Commerce, and it uses data from the a recent report covering the economic impacts of maritime shipping in the Great Lakes-St. Lawrence region.
A Crucial Trade Corridor
Freighter trade in the Great Lakes originally gained prominence in the 1840s, when copper and iron ore were discovered in the areas surrounding the lakes. This kickstarted large-scale shipping, and was the catalyst that led to the familiar lake freighters that are often seen on the waters now.
In modern times, these metals are just one of many different categories of products that can be found aboard active vessels.
Here are the most important types of cargo that make up the $77.4 billion (C$100 billion) of goods that flow through these lakes and waterways each year:
- Iron ore, aluminum, and finished steel
- Limestone and cement
- Grain (wheat, barley, soybeans, corn, and canola)
- Petroleum products such as gasoline
- Fertilizers, sugar, and road salt
- Containers filled with consumer goods or manufactured products
- Oversized cargo, such as wind turbines or other machinery
There are 100+ port cities and towns that are connected through the waterways, and the region facilitates trade to 60+ countries, as well.
The Economic Impact
What are the economic benefits stemming from all the trade that originates in these 2,300 miles (3,700 km) of river and lake systems?
According to the most recent edition of the report, marine cargo and vessel activity generated a total of $45.6 billion of economic impact in the U.S. and Canada, including $17.9 billion of personal income and $9 billion of tax revenue. Further, it’s estimated that 328,500 jobs have been created or are sustained by port activity, with the majority of them in places like Ontario, Quebec, Michigan, Indiana, and Ohio.
Even in the digital age, physical goods (food, materials, machinery, consumer goods, etc.) are needed each day to keep the economy humming along – and in that respect, the Great Lakes-St.Lawrence region will remain a vital and important trade corridor for both countries for a long time.
Economy
Economic Growth Forecasts for G7 and BRICS Countries in 2024
The IMF has released its economic growth forecasts for 2024. How do the G7 and BRICS countries compare?
G7 & BRICS Real GDP Growth Forecasts for 2024
The International Monetary Fund’s (IMF) has released its real gross domestic product (GDP) growth forecasts for 2024, and while global growth is projected to stay steady at 3.2%, various major nations are seeing declining forecasts.
This chart visualizes the 2024 real GDP growth forecasts using data from the IMF’s 2024 World Economic Outlook for G7 and BRICS member nations along with Saudi Arabia, which is still considering an invitation to join the bloc.
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Mixed Economic Growth Prospects for Major Nations in 2024
Economic growth projections by the IMF for major nations are mixed, with the majority of G7 and BRICS countries forecasted to have slower growth in 2024 compared to 2023.
Only three BRICS-invited or member countries, Saudi Arabia, the UAE, and South Africa, have higher projected real GDP growth rates in 2024 than last year.
| Group | Country | Real GDP Growth (2023) | Real GDP Growth (2024P) |
|---|---|---|---|
| G7 | 🇺🇸 U.S. | 2.5% | 2.7% |
| G7 | 🇨🇦 Canada | 1.1% | 1.2% |
| G7 | 🇯🇵 Japan | 1.9% | 0.9% |
| G7 | 🇫🇷 France | 0.9% | 0.7% |
| G7 | 🇮🇹 Italy | 0.9% | 0.7% |
| G7 | 🇬🇧 UK | 0.1% | 0.5% |
| G7 | 🇩🇪 Germany | -0.3% | 0.2% |
| BRICS | 🇮🇳 India | 7.8% | 6.8% |
| BRICS | 🇨🇳 China | 5.2% | 4.6% |
| BRICS | 🇦🇪 UAE | 3.4% | 3.5% |
| BRICS | 🇮🇷 Iran | 4.7% | 3.3% |
| BRICS | 🇷🇺 Russia | 3.6% | 3.2% |
| BRICS | 🇪🇬 Egypt | 3.8% | 3.0% |
| BRICS-invited | 🇸🇦 Saudi Arabia | -0.8% | 2.6% |
| BRICS | 🇧🇷 Brazil | 2.9% | 2.2% |
| BRICS | 🇿🇦 South Africa | 0.6% | 0.9% |
| BRICS | 🇪🇹 Ethiopia | 7.2% | 6.2% |
| 🌍 World | 3.2% | 3.2% |
China and India are forecasted to maintain relatively high growth rates in 2024 at 4.6% and 6.8% respectively, but compared to the previous year, China is growing 0.6 percentage points slower while India is an entire percentage point slower.
On the other hand, four G7 nations are set to grow faster than last year, which includes Germany making its comeback from its negative real GDP growth of -0.3% in 2023.
Faster Growth for BRICS than G7 Nations
Despite mostly lower growth forecasts in 2024 compared to 2023, BRICS nations still have a significantly higher average growth forecast at 3.6% compared to the G7 average of 1%.
While the G7 countries’ combined GDP is around $15 trillion greater than the BRICS nations, with continued higher growth rates and the potential to add more members, BRICS looks likely to overtake the G7 in economic size within two decades.
BRICS Expansion Stutters Before October 2024 Summit
BRICS’ recent expansion has stuttered slightly, as Argentina’s newly-elected president Javier Milei declined its invitation and Saudi Arabia clarified that the country is still considering its invitation and has not joined BRICS yet.
Even with these initial growing pains, South Africa’s Foreign Minister Naledi Pandor told reporters in February that 34 different countries have submitted applications to join the growing BRICS bloc.
Any changes to the group are likely to be announced leading up to or at the 2024 BRICS summit which takes place October 22-24 in Kazan, Russia.
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