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Circular flow of economic

See the below image for the Circular flow of economic diagram. The circular flow model of the economy distills the idea outlined above and shows the flow of money and goods and services in a capitalist economy.

This model shows the most common circular flow of income between the household sector and the business sector. There are product markets and resource markets between the two. Households purchase goods and services that businesses provide through the product market.

Like the other sectors, each flow of money is paired with a flow of a factor of production or goods and services. The fifth sector – the financial sector – is added to complete the circular flow model.

Procurement in the circular economy

See the below image for the Procurement in the circular economy diagram. Through knowledge exchange and collaboration CircularProcurement.ca is a leading showcase of insight and experience to put circular economy concepts into action. We recognize the power of buying to shift markets and offer products and services to advance broader environmental and social goals.

Creating a circular economy — one that eliminates waste and pollution, keeps products and materials in use, and regenerates natural systems — will be crucial to realizing our net-zero goal. Changing how we buy and what we buy is critical for Canada’s transition to a circular economy.

Transitioning to a circular economy unlocks a $4.5 trillion economic opportunity for Canada. Governments across Canada spend $200 billion annually on goods and services, which equates to 15% of Canada’s Gross Domestic Product (GDP): 80% or $160 billion is spent by municipalities.