Markets
Great Lakes Economy: Examining the Cross-Border Supply Chain
If the region surrounding the Great Lakes was its own country, it would be the 3rd largest economy in the world with a GDP of $6 trillion. That’s bigger than Japan or Germany, and certainly a force on the global stage.
However, this highly-integrated Great Lakes economic engine is different than many others – that’s because it has an international border right down the middle of it. The area’s five massive freshwater lakes are actually nestled right between eight U.S. states and two Canadian provinces, making frictionless trade a necessity to stay competitive in global markets.
How This Supply Chain Works
Today’s infographic comes to us from the Council of the Great Lakes Region, and it details the integration of the cross-border supply chain that helps the region make goods that are competitive in international markets.
In today’s extremely competitive and borderless global economy, many goods that get produced are ultimately the result of a group effort.
Both large and small companies rely heavily on highly specialized suppliers from all parts of the globe to get what they need to build the best product. Luckily, in the Great Lakes economy, one does not have to go far to find goods or services to fill these gaps.
Goods of the Great Lakes
1. Manufacturing
Both the automotive and aerospace industries are incredibly important to the United States and Canada โ and within the Great Lakes region, these industries are highly integrated to compete on a global level.
In the auto sector, supply chains rely on parts to come from multiple companies in both the U.S. and Canada. In some cases, automobiles may contain components that have crossed the border up to 18 times before the finished product reaches the final car lot.
The aerospace supply chains between the United States and Canada are also highly interdependent. In 2016, for example, Canada was the fifth largest foreign market for U.S. aerospace exports, valued at approximately $8.3 billion. Meanwhile, the United States is also Canadaโs largest aerospace market, receiving 60% of all Canadian aerospace exports.
2. Mining and Energy
Manufacturers in the Great Lakes donโt have to look far for the raw materials needed to manufacture autos and airplanes. These can be found nearby, along with other key metals and minerals.
Some key examples? Pennsylvania produces important met coal, which is used to produce steel, while Minnesota is the largest producer of iron ore in the United States. North of the border, Quebecโs aluminum is becoming more important for auto and aerospace producers in both Michigan and Ontario. As a whole, the Great Lakes region produces billions of dollars worth of minerals every year.
Although the Great Lake states are not known for their crude oil production, they are home to three of the countryโs 10 largest refineries. Processing oil from the U.S., Canada, and other international sources, these refineries make sure fuel is abundantly close for Great Lakes industry.
3. Food and Agriculture
While goods vary greatly from place to place, the food industry is also very interconnected in the Great Lakes. For example, Pennsylvania benefits from selling chocolate products to Canada, while Minnesota and Ohio both sell animal feed.
Every year, Great Lake states ship $8.4 billion of exports to Canada, receiving $8.9 billion of imports in return.
Markets
Mapped: The Growth in House Prices by Country
Global house prices were resilient in 2022, rising 6%. We compare nominal and real price growth by country as interest rates surged.

Mapped: The Growth in House Prices by Country
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Global housing prices rose an average of 6% annually, between Q4 2021 and Q4 2022.
In real terms that take inflation into account, prices actually fell 2% for the first decline in 12 years. Despite a surge in interest rates and mortgage costs, housing markets were noticeably stable. Real prices remain 7% above pre-pandemic levels.
In this graphic, we show the change in residential property prices with data from the Bank for International Settlements (BIS).
The Growth in House Prices, Ranked
The following dataset from the BIS covers nominal and real house price growth across 58 countries and regions as of the fourth quarter of 2022:
Price Growth Rank | Country / Region | Nominal Year-over-Year Change (%) | Real Year-over-Year Change (%) |
---|---|---|---|
1 | ๐น๐ท Tรผrkiye | 167.9 | 51.0 |
2 | ๐ท๐ธ Serbia | 23.1 | 7.0 |
3 | ๐ท๐บ Russia | 23.1 | 9.7 |
4 | ๐ฒ๐ฐ North Macedonia | 20.6 | 1.0 |
5 | ๐ฎ๐ธ Iceland | 20.3 | 9.9 |
6 | ๐ญ๐ท Croatia | 17.3 | 3.6 |
7 | ๐ช๐ช Estonia | 16.9 | -3.0 |
8 | ๐ฎ๐ฑ Israel | 16.8 | 11.0 |
9 | ๐ญ๐บ Hungary | 16.5 | -5.1 |
10 | ๐ฑ๐น Lithuania | 16.0 | -5.5 |
11 | ๐ธ๐ฎ Slovenia | 15.4 | 4.2 |
12 | ๐ง๐ฌ Bulgaria | 13.4 | -3.2 |
13 | ๐ฌ๐ท Greece | 12.2 | 3.7 |
14 | ๐ต๐น Portugal | 11.3 | 1.3 |
15 | ๐ฌ๐ง United Kingdom | 10.0 | -0.7 |
16 | ๐ธ๐ฐ Slovak Republic | 9.7 | -4.8 |
17 | ๐ฆ๐ช United Arab Emirates | 9.6 | 2.9 |
18 | ๐ต๐ฑ Poland | 9.3 | -6.9 |
19 | ๐ฑ๐ป Latvia | 9.1 | -10.2 |
20 | ๐ธ๐ฌ Singapore | 8.6 | 1.9 |
21 | ๐ฎ๐ช Ireland | 8.6 | -0.2 |
22 | ๐จ๐ฑ Chile | 8.2 | -3.0 |
23 | ๐ฏ๐ต Japan | 7.9 | 3.9 |
24 | ๐ฒ๐ฝ Mexico | 7.9 | -0.1 |
25 | ๐ต๐ญ Philippines | 7.7 | -0.2 |
26 | ๐บ๐ธ United States | 7.1 | 0.0 |
27 | ๐จ๐ฟ Czechia | 6.9 | -7.6 |
28 | ๐ท๐ด Romania | 6.7 | -7.5 |
29 | ๐ฒ๐น Malta | 6.3 | -0.7 |
30 | ๐จ๐พ Cyprus | 6.3 | -2.9 |
31 | ๐จ๐ด Colombia | 6.3 | -5.6 |
32 | ๐ฑ๐บ Luxembourg | 5.6 | -0.5 |
33 | ๐ช๐ธ Spain | 5.5 | -1.1 |
34 | ๐จ๐ญ Switzerland | 5.4 | 2.4 |
35 | ๐ณ๐ฑ Netherlands | 5.4 | -5.3 |
36 | ๐ฆ๐น Austria | 5.2 | -4.8 |
37 | ๐ซ๐ท France | 4.8 | -1.2 |
38 | ๐ง๐ช Belgium | 4.7 | -5.7 |
39 | ๐น๐ญ Thailand | 4.7 | -1.1 |
40 | ๐ฟ๐ฆ South Africa | 3.1 | -4.0 |
41 | ๐ฎ๐ณ India | 2.8 | -3.1 |
42 | ๐ฎ๐น Italy | 2.8 | -8.0 |
43 | ๐ณ๐ด Norway | 2.6 | -3.8 |
44 | ๐ฎ๐ฉ Indonesia | 2.0 | -3.4 |
45 | ๐ต๐ช Peru | 1.5 | -6.3 |
46 | ๐ฒ๐พ Malaysia | 1.2 | -2.6 |
47 | ๐ฐ๐ท South Korea | -0.1 | -5.0 |
48 | ๐ฒ๐ฆ Morocco | -0.1 | -7.7 |
49 | ๐ง๐ท Brazil | -0.1 | -5.8 |
50 | ๐ซ๐ฎ Finland | -2.3 | -10.2 |
51 | ๐ฉ๐ฐ Denmark | -2.4 | -10.6 |
52 | ๐ฆ๐บ Australia | -3.2 | -10.2 |
53 | ๐ฉ๐ช Germany | -3.6 | -12.1 |
54 | ๐ธ๐ช Sweden | -3.7 | -13.7 |
55 | ๐จ๐ณ China | -3.7 | -5.4 |
56 | ๐จ๐ฆ Canada | -3.8 | -9.8 |
57 | ๐ณ๐ฟ New Zealand | -10.4 | -16.5 |
58 | ๐ญ๐ฐ Hong Kong SAR | -13.5 | -15.1 |
Tรผrkiyeโs property prices jumped the highest globally, at nearly 168% amid soaring inflation.
Real estate demand has increased alongside declining interest rates. The government drastically cut interest rates from 19% in late 2021 to 8.5% to support a weakening economy.
Many European countries saw some of the highest price growth in nominal terms. A strong labor market and low interest rates pushed up prices, even as mortgage rates broadly doubled across the continent. For real price growth, most countries were in negative territoryโnotably Sweden, Germany, and Denmark.
Nominal U.S. housing prices grew just over 7%, while real price growth halted to 0%. Prices have remained elevated given the stubbornly low supply of inventory. In fact, residential prices remain 45% above pre-pandemic levels.
How Do Interest Rates Impact Property Markets?
Global house prices boomed during the pandemic as central banks cut interest rates to prop up economies.
Now, rates have returned to levels last seen before the Global Financial Crisis. On average, rates have increased four percentage points in many major economies. Roughly three-quarters of the countries in the BIS dataset witnessed negative year-over-year real house price growth as of the fourth quarter of 2022.
Interest rates have a large impact on property prices. Cross-country evidence shows that for every one percentage point increase in real interest rates, the growth rate of housing prices tends to fall by about two percentage points.
When Will Housing Prices Fall?
The rise in U.S. interest rates has been counteracted by homeowners being reluctant to sell so they can keep their low mortgage rates. As a result, it is keeping inventory low and prices high. Homeowners canโt sell and keep their low mortgage rates unless they meet strict conditions on a new property.
Additionally, several other factors impact price dynamics. Construction costs, income growth, labor shortages, and population growth all play a role.
With a strong labor market continuing through 2023, stable incomes may help stave off prices from falling. On the other hand, buyers with floating-rate mortgages face steeper costs and may be unable to afford new rates. This could increase housing supply in the market, potentially leading to lower prices.
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