CaNada

ECONOMICS

Canada resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. Canada has a large oil and natural gas sector with the majority of crude oil production derived from oil sands in the western provinces, especially Alberta. Canada now ranks third in the world in proved oil reserves behind Venezuela and Saudi Arabia and is the world’s seventh-largest oil producer.

TThe 1989 Canada-US Free Trade Agreement and the 1994 North American Free Trade Agreement (which includes Mexico) dramatically increased trade and economic integration between the US and Canada. Canada and the US enjoy the world’s most comprehensive bilateral trade and investment relationship, with goods and services trade totaling more than $680 billion in 2017, and two-way investment stocks of more than $800 billion. Over three-fourths of Canada’s merchandise exports are destined for the US each year. Canada is the largest foreign supplier of energy to the US, including oil, natural gas, and electric power, and a top source of US uranium imports.

Given its abundant natural resources, highly skilled labor force, and modern capital stock, Canada enjoyed solid economic growth from 1993 through 2007. The global economic crisis of 2007-08 moved the Canadian economy into sharp recession by late 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada’s economy posted strong growth in 2017 at 3%, but most analysts are projecting Canada’s economic growth will drop back closer to 2% in 2018.

 

 

1990 2000 2010 2017
GNI, Atlas method (current US$) (billions) 569.29 695.71 1,508.74 1,573.49
GNI per capita, Atlas method (current US$) 20,480 22,610 44,370 42,870
GNI, PPP (current international $) (billions) 538.64 874.38 1,334.17 1,691.10
GNI per capita, PPP (current international $) 19,380 28,420 39,230 46,070
GDP (current US$) (billions) 593.93 742.29 1,613.46 1,653.04
GDP growth (annual %) 0.2 5.2 3.1 3
Inflation, GDP deflator (annual %) 3.4 4.3 2.9 2.3
Agriculture, forestry, and fishing, value added (% of GDP) .. .. 1 1
Industry (including construction), value added (% of GDP) .. .. 27 28
Exports of goods and services (% of GDP) 25 44 29 31
Imports of goods and services (% of GDP) 25 39 31 33
Gross capital formation (% of GDP) 21 21 24 24
Revenue, excluding grants (% of GDP) 19.8 20.9 16.9 17.4
Net lending (+) / net borrowing (-) (% of GDP) -4.5 2.2 -2.2 0.1
States and markets
Time required to start a business (days) .. 4 6 2
Domestic credit provided by financial sector (% of GDP) 100.6 111.1 172.3 ..
Tax revenue (% of GDP) 14.2 14.9 11.8 12.2
Military expenditure (% of GDP) 2 1.1 1.2 1.3
Mobile cellular subscriptions (per 100 people) 2.1 28.4 75.6 85.9
Individuals using the Internet (% of population) 0.4 51.3 80.3 91.2
High-technology exports (% of manufactured exports) 14 18 14 13
Statistical Capacity score (Overall average) .. .. .. ..
Global links
Merchandise trade (% of GDP) 42 70 49 52
Net barter terms of trade index (2000 = 100) .. 100 118 106
External debt stocks, total (DOD, current US$) (millions) .. .. .. ..
Total debt service (% of exports of goods, services and primary income) .. .. .. ..
Net migration (thousands) 699 1,027 1,146 1,100
Personal remittances, received (current US$) (millions) .. 555 1,199 1,337
Foreign direct investment, net inflows (BoP, current US$) (millions) 7,581 68,309 29,713 27,526
Net official development assistance received (current US$) (millions) .. .. .. ..