So while we have revised our projections for goods exports, we still see significant growth prospects for the production and export of services. This is an important element of our economic outlook. Financial, management, engineering, computer and information, and travel and transportation services currently constitute about 15 per cent of our exports (Chart 16).
Most notably, while the share of manufactured goods in Canada’s exports has been falling since 2000, the services share has been rising.23 In particular, firms in the information technology service sector, which sells business solutions, software and entertainment services, are benefiting from strong foreign demand.24 The expansion of the production and export of services in Canada and other advanced economies is driven by a number of developments, including the trend toward outsourcing the provision of standardized services.25 Other contributions 22  This is reflected in the Canadian effective exchange rate index.