Canada’s manufacturing sector's share of GDP started at 16% in 1997, peaking at 17.1% in 1999, before entering a steady decline influenced by globalization, resource-based economic shifts, and the 2008 recession. By 2009, manufacturing’s contribution dropped to 10.1%, further stabilizing at around 9-10% through 2020. Canada’s economic strategy emphasizing resource exports, combined with increased labor and production costs, contributed to the sector’s reduced GDP share. This gradual decline highlights Canada’s growing focus on services and tech industries, while retaining limited support for manufacturing modernization initiatives.
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