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PESTEL analysis of a country - Canada

Canada is a country located in North America. There are 38939575 inhabitants in 2022. The total area is also 9984670 km² with a density of 3.90 inhabitants per km². The GDP is 1643.408 billion dollars. French and English are the official languages. As far as government policy is concerned, Canada is under a constitutional monarchy with a parliamentary democracy. The number of tourists is estimated around 20 million per year.

PESTEL analysis of a country - Canada

Credit Photo : Unsplash Juan Rojas


1) Political environment

Canada is generally considered a powerful country, a founding member of the United Nations. Relations with the United States are good, as well as with France and the United Kingdom. As we said in the introduction, Canada operates under a constitutional monarchy. It is a democratic country with a parliamentary system. The Prime Minister has executive power. In terms of political stability, Canada is a very stable country. It is considered one of the safest countries in the world. Crime is very low, and the police are generally much more respected than in other countries, such as France, in particular. Tourism is one of the most important sectors in the country. Each year, more than 20 million tourists come to Canada, seduced not only by the security of the place but also by the beauty of the landscapes and their excellent global relations. All these characteristics have contributed to the country's good reputation.

2) Economic Environment

Canada is a member of several global founding axes, such as the United Nations (UN), the Organisation for Economic Co-operation and Development (OECD), and the World Trade Organisation (WTO). The country is also a member of the G20. Canada has great importance at the economic level, thanks to the extent of tourist activities and a set of free trade agreements that allows a better circulation of goods between countries, in particular, the United States and Mexico. As in other countries, some industries are public and others private. Canada has a large number of companies that contribute to enriching the country in a large number of sectors such as energy, but also transport.

3) Social Environment

Canada is one of the largest countries in the world, even if the number of inhabitants is far from being high in relation to the total size of the territory. It is one of the most diverse countries in the world, and Canada has historically attracted thousands of people from other countries. It is also a country with immigration procedures facilitated by the fact that the largest companies are in dire need of labour to work. Canada facilitates immigration as much as possible in order to encourage as many foreigners as possible to come and work in the territory in multiple sectors. According to statistics, more than 50% of Canadians between the ages of 15 and 30 were born abroad and this figure is likely to increase in the years to come. While the official languages of the country are English and French and these are the two most spoken languages ​​in the territory. The fact remains that there are nearly 200 languages ​​that are spoken as a mother tongue or learned in different schools in Canada. It is also one of the countries with the most accepted religious tolerance and the highest standard of living in the world.

4) Technological Environment

As in all countries, Canada has been affected by the digital revolution and the digitisation of businesses and almost all sectors of activity. Technology, of course, plays a key role in the country's economy, whether in the field of health, education, or transport. Canada is considered one of the countries where companies have the best forecast for the future and where it is the easiest to grow a group. Thanks to technological installations, both individuals and professionals manage to have multiple opportunities.

5) The Environment in Canada

The fact that thousands of tourists visit Canada every year makes the country more environmentally fragile. Indeed, if tourism is an activity necessary for the smooth running of the country's economy, it is also harmful to the environment. However, Canada is one of the countries with the largest number of exceptional landscapes in the world, whether mountains, lakes, or glaciers. Today, Canada must manage a number of problems, such as pollution and climate change.

6) Legal Environment

In the legal environment, the laws protecting consumers, as well as employees in the world of work, must be taken into account. The Canadian Human Rights Act (LCDP) is also in place, which punishes, among other things, all forms of discrimination based on sex, sexual orientation, age, race, or religious beliefs.


The PESTEL analysis of Canada shows that it is a very stable country politically and economically, endowed with many richness, which attract thousands of tourists each year. Many laws are present to protect the citizens of the country, whether in the world of work or consumption. In 2022, Canada was one of the countries where people are the happiest, even if some environmental problems still need to be solved.


Sources : Statistics Canada, Adocc

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