Canada is an affluent country with one of the world's highest GDPs, thanks to its abundant natural resources, substantial industrial base, and thriving fishing sector.
Regarding land area, Canada is the world's 2nd largest nation. The economy of Canada is advanced, with an annual GDP of $1.64 trillion in dollar terms in 2020 which makes it one of the world's most significant economies.
As a result, Canada is now the world's tenth-largest economy. Permafrost covers nearly half of Canada's land surface. Because of its strong and diverse economy, Canada is a prosperous country and to date, remains one of the most robust economies in the world.
Apart from some Caribbean island countries, Canada is the only large country in the western hemisphere having a parliamentary form of government inherited from the U.K. The country is organized into ten provinces, with Quebec, Ontario, and British Columbia accounting for 75%.
After a corruption investigation that harmed Prime Minister Justin Trudeau's political persona, his Liberal Party won a 2nd term in office in the October 2019 general elections. He is the son of earlier Prime Minister Pierre Trudeau, known for his charm.
With imports and exports of goods and services accounting for almost one-third of GDP, Canada's economy mainly relies on foreign trade. The United States, China, and the United Kingdom are the nation's three main trading partners.
Real estate (leasing, rental) and industry (quarrying, mining, or oil and gas) are the most important businesses in terms of GDP contribution. Global Affairs Canada establishes, shapes, and advances Canada's values and interests in a complex globalized world.
Overview of The Canadian Economy
Canada economy facts are fun to read! Canada was formed primarily as a money-making plan.
The northern part of the landmass was an attractive location in the 1700s. The British and French initially colonized North America because of all the furry forest animals it enclosed. Beautiful, shiny furs were among the most desired belongings of rich and powerful Europeans at the time.
The late 19th to early 20th centuries saw the world be presented with a plethora of amazing new machines. As a result, Canadians began to develop a strong manufacturing sector, with massive factories transforming raw natural resources into valuable high items like cloth, paper, chemicals, steel, and automobiles.
In contrast, dams and derricks facilitated the creation of new goods like oil, hydroelectricity, and natural gas. The Canadian economy altered substantially again during the decades following the Second World War (1939-1945), as manufacturing gains were invested in more excellent wages, taxation, and social programs.
In Canada, the service industry dominates, engaging three-quarters of the workforce. The service sector employs most Canadians in metropolitan cities such as Vancouver, Toronto, and Montreal. Transportation, lumber, minerals, paper products, fish products, gas, and chemicals are essential industries.
Health care involves nurses, doctors, and surgeons, as well as their clerks and helpers.
Financial services, which contains stockbrokers, bankers, and real estate agents.
Schooling, includes educators, librarians, professors, and administrators.
There is also food and sales, which consists of store clerks, cooks, and cashiers in places such as restaurants, shopping malls, supermarkets, and other stores.
Service workers include journalists, artists, writers, and entertainers such as musicians and actors.
In recent years, government or administrative work has become increasingly popular, with the Canadian federal government currently claiming to be the nation's single major employer.
A growing attitude towards organic food is assisting some Canadian farmers, notably fruit and veggie growers, in experiencing a mini-boom in various parts of the nation. However, Canadian agriculture as a whole is still in decline.
Top Imports And Exports Of Canada
Canada's exports have decreased by $35.5 billion in the last five years, from $466 billion in 2014 to $431 billion in 2019. Crude petroleum ($67.8 billion), gold ($14.6 billion), cars ($40.9 billion), petroleum products ($12.3 billion), and automobile parts ($10.8 billion) are the most significant exports.
Other than oil, commodities make for roughly 20-30% of all Canadian exports. Automotive items ($115 billion), plastics ($45 billion), electronics ($72 billion), machinery ($69 billion), and energy ($37 billion) are the top five categories of goods imported by Canada.
Imports aren't usually tied to acquiring a consumer item like a vehicle or a laptop.
Over the previous three quarters, Canada's economy has risen at a rate of about 3.5%. An increased rate such as this hasn't been seen since the Great Recession in 2008-2009.
British Columbia exports over 35% of its goods to China, about twice as much as the rest of the country. Canadian exports to China account for around 2.5 % of Canadian GDP, but United States exports to China account for only 1.3 % of US GDP. It is partially due to the British Columbian transpacific link.
Canada is America's biggest energy exporter, including natural gas, petroleum products, crude oil, and electricity.
Canada is attempting to overcome yet another geographical disadvantage. It shares no borders with any other countries than the US. Canada has a 60:40 private to public asset ratio and one of the most significant degrees of economic freedom in the world as a nation underneath the British monarchy.
Real estate, manufacturing, and mining are the three main businesses, and it is house to several of the world's largest mining corporations. With its main trading partners, global trade accounts for a considerable GDP.
Canada's steel exports in 2018 were slightly over one-tenth the amount of China, the world's largest exporter.
While American enterprises generate millions of workers for Canadians, detractors contend that their dominance in the country disadvantages Canadian businesses and investors who cannot compete with Americans.
Moreover, telecommunications, national defense, energy, and culture are areas that the Canadian government considers too crucial to entrust to Americans (or other outsiders, for that subject).
In 1991 and 1992, 14 months of intense talks resulted in the North American Free Trade Agreement (NAFTA). It was approved by the legislatures of Canada, the United States, and Mexico in 1993, and it went into effect from January 1994.
Before NAFTA, Canada and the United States had a free trade deal known as the Canada-United States Free Trade Agreement. Critical parts in areas like dairy and agribusiness, cars, intellectual property, and workers are included in the agreement.
Main Industries In Canada
Shopify Inc., large banks, including the Royal Bank of Canada, plus energy transport and distribution business Enbridge Inc. are all based in Canada.
ATS Automation Tooling Systems, a personalized engineer and producer of industrial automated production processes; Ballard Power Systems Inc., a maker of hydrogen fuel cells; as well as NFI Group Inc., a manufacturing company of massive transit buses, are just a few of the significant Canadian manufacturers.
There is also a considerable financial industry in the country, including numerous banks as well as other financial institutions and a significant real estate sector.
Canada's real estate, renting, and leasing sector consists of businesses that do things like real estate, renting, selling, or buying property for others, assessing real estate, leasing and renting tangible assets like automobiles, and leasing non-financial intangible resources like copyrighted works.
The manufacturing sector in Canada is involved in converting substances into innovative products, either physically or chemically. These items could be final goods for human consumption and semi-finished products used in manufacturing operations.
Food, pharmaceuticals, fabricated metal goods, petroleum, transportation equipment, machinery, and other things are produced in Canada's industries.
As per the government of Canada, the industry's GDP increased by 8.1 % in the 12 months ended June 2021, employing about 1.5 million people.
The collection of natural minerals is the primary focus of Canada's quarrying, mining, and oil and gas production industries. Oil and gas extraction dominates the business, while other mining activities comprise coal mining and the production of various metals such as gold, copper, silver, nickel, and others.
In addition, mining and quarrying of sand, stone, clay, gravel, ceramics, and potash mining are all part of the sector. Because they account for almost three-quarters of the GDP of Canada, the most prominent industries are a significant reflection of the country's economy.
Statistics Canada!Sales taxes in Canada have long been one of the most divisive and controversial political measures in modern Canada, with Canadians never tired of grumbling about them.
Canada's GDP
According to the most recent World Bank estimates, the nation's overall gross domestic product (GDP) would be $1.64 trillion in present USD by 2020. according to Trading Economics' international macro models and experts, the GDP of Canada is predicted to hit 1670.00 USD billion at the end of 2021.
The GDP growth rate of Canada is expected to be 0.5 %, with a forecasted growth rate of 2.2 %.
Trading Economics delivers real values, historical time series, projections, consensus numbers, and news for 20 million financial factors from 196 countries. In 2014, the GDP per capita was $56100, placing tenth officially and ninth in purchasing power parity.
Services account for 69.8% of GDP, with industry accounting for 28.5 % and agriculture accounting for 1.7 %.
Canada has a 6.6 % unemployment rate, a 1% inflation rate, and 12.9 % living in poverty. With imports and exports of goods and services accounting for almost one-third of GDP, Canada's economy relies on international trade.
According to Canadian governance, the industry's GDP expanded 15.1 % in the 12 months to the end of 2021, employing roughly 190,000 people.
Manufacturing relative proportion of GDP fell from 24.3% in the 1960s to 15.6% by 2005, according to a 2009 research by Statistics Canada. Yet, industrial volumes grew in lockstep with the overall expansion in the volume index for GDP between 1961 and 2005.
The labor force in Canada is expected to be 19 million people. Services employ 76% of the labor force, the industry employs 13%, construction employs 6%, farming employs 2%, and others use 3%.
The national debt in Canada is $582 billion, or 33.8 % of GDP. Revenues are expected to be $682.5 billion, with expenses expected to be around $750 billion. In addition, Canada is estimated to have $65.82 billion of foreign reserves and provides $4.1 billion annually.
Canada is among the most trade-dependent nations globally, with trade accounting for more than 65 % of its GDP. Up to 75% of all Canadian trade is carried exclusively with the U.S., implying that the present Canadian economy is very reliant on and intertwined with American economic events.
After 14 years of employment growth, Canada's employment market outperformed that of the United States, achieving a 30-year lowest rate of unemployment in December 2006.
Energy resources, such as oil, power, chemical fuels, and natural gas, are the most critical assets Canada exports or provides to the United States (most are astonished to find that Canada is America's largest foreign supplier of oil).
In addition, aluminum, gold, nickel, and iron ore are prominent exports, among other raw natural resources. The majority of Canada's residual exports to the United States are half-assembled goods that are then finished in the United States.
Half-assembled cars are a huge category, and the Ontario-Michigan border area in Canada and the U.S. houses the nation's most significant automobile manufacturing industry.
According to Statistics Canada, the United States is not only the country's most significant trading partner, but it is also the sole biggest foreign investor in the country's GDP, accounting for over half of all foreign direct investment in the country.
Canada is presently the world's third-largest exporter of crude oil. Daily, it transports 3.7 million barrels. The United States receives 98% of its oil exports.
The Bureau of Economic Analysis (BEA), a department of the Commerce Department, is in charge of economic data analysis and reporting. The work of the Central Intelligence Agency, as the world's top intelligence service, is critical to the United States' national security. It gathers and analyses foreign intelligence and engages in covert operations.
