North America: Economic overview

North America is an important market for UK food exports. The region comprises three countries: USA, Canada and Mexico. Collectively they are a large and affluent market, with a population of around 500 million and average GDP per capita among the highest globally at close to $57,000 (Source: IMF World Economic Outlook).

The US economy dominates the region and in recent years has performed strongly. In 2021, US gross domestic product (GDP) grew by 5.7%, outstripping the healthy growth seen in Canada and Mexico (Table 1).

However, the global slowdown which began in 2022, has impacted the USA the most. Growth rates are expected to drop more in 2022 and 2023 as the economic outlook has been dampened by higher inflation, the cost-of-living crisis, Russia’s invasion of Ukraine and the lingering COVID-19 pandemic.

Table 1. GDP growth projections for North America

  2021 2022 2023
USA 5.7 1.6 1.0
Canada 4.5 3.3 1.5
Mexico 4.8 2.1 1.2
World average 6.0 3.2 2.7

Source: IMF World Economic Outlook 2022