Canadians to spend an average of $943 for holidays, giving GDP a $11 billion boost

Pierre Cléroux, chief economist at the BDC, joins BNN Bloomberg to discuss 'Buy Canadian' trends for the holidays amid tariff tensions.

The trend to buy Canadian goods is still going strong, with more Canadians planning to spend on local goods this holiday season.

Canadian households will spend an average of $943 during the holidays, and about $553 – or 59 per cent– is expected to go toward Canadian goods and services, according to a survey by the Business Development Bank of Canada (BDC).

This will contribute an estimated $11 billion to the country’s GDP, and support 45,000 jobs, the survey states.

“This is important, because this could really have an impact on the Canadian economy,” Pierre Cléroux, chief economist at BDC told BNN Bloomberg.

Cléroux highlighted that while the spending amount is about the same as last year, the difference is that 46 per cent of people surveyed said they’re going to be buying “Canadian” this year.

This comes amid the trade war with the U.S. and greater economic uncertainty in Canada.

The federal government’s ‘Buy Canadian policy’ officially went into affect on Tuesday. The strategy aims to protect domestic industries by prioritizing Canadian products and labour within federal procurement processes.

• Aggressive discounts and patriotism drive Canada’s holiday shopping season
• Price vs. patriotism: Holiday season a test for buy Canadian sentiment

“Canadians want to support the Canadian businesses, the local business, and that’s the reason why they’re shifting to more Canadian products and services,” said Cléroux.

More than half of holiday spending, 54 per cent, is expected to go toward food and beverages, according to the survey.

It also states that Canadians are expected to spend 39 per cent on clothing and accessories, 34 per cent on local shops and restaurants and 27 per cent on entertainment.

Businesses getting better at marketing

Cléroux said more businesses are marketing themselves as local which they didn’t find necessary before.

“Now they do because they understand that Canadians are looking for Canadian products,” said Cléroux.

He also said it’s becoming easier to identify Canadian products, because businesses are becoming more clear.

He also said ‘maple washing’, which is misleading a product as Canadian, is not a major concern, as it is thought to be.

• Meet the Canadian businesses that are betting big on home turf

How to support

Cléroux encourages Canadians to buy gift cards from a local businesses, if they are unsure about what to get.

“It’s a great way to give a gift, but also to give a gift that will have a positive impact on your community,” said Cléroux.

The BDC survey estimates that an extra $100 on the average $553 local budget can boost the estimated $11 billion impact to $13 billion. It can also boost job creation from 45,000 to 55,000.

The crown corporation launched the Buy 5 High 5 movement earlier this year, encouraging people to share and promote Canadian products.

Research from the BDC also shows that spending $25 a month on Canadian products can help create 60,000 jobs and boost the country’s GDP by 0.7 per cent.