Economy of Canada
From Wikipedia, the free encyclopedia
The economy of Canada is a highly developed mixed economy,[36][37][38] with the world's tenth-largest economy as of 2023[update], and a nominal GDP of approximately US$2.117 trillion.[6] Canada is one of the world's largest trading nations, with a highly globalized economy.[39] In 2021, Canadian trade in goods and services reached $2.016 trillion.[40] Canada's exports totalled over $637 billion, while its imported goods were worth over $631 billion, of which approximately $391 billion originated from the United States.[40] In 2018, Canada had a trade deficit in goods of $22 billion and a trade deficit in services of $25 billion.[40] The Toronto Stock Exchange is the tenth-largest stock exchange in the world by market capitalization, listing over 1,500 companies with a combined market capitalization of over US$3 trillion.[41]
Currency | Canadian dollar (CAD, C$) |
---|---|
April 1 – March 31 | |
Trade organizations | OECD, WTO, G-20, G7, USMCA, CPTPP, APEC and others |
Country group | |
Statistics | |
Population | 40,769,890 (Q1, 2024)[5] |
GDP | |
GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
2.7% (12 month change – April 2024)[9] | |
Population below poverty line | 6.4% (official, 2020; StatCan)[10] |
0.281 low (2020, StatCan)[11][12] | |
| |
Labour force | |
Unemployment | |
Average gross salary | C$6,809 / US$4,975 monthly[19] (2022) |
C$5,065 / US$3,700 monthly[20][21] (2022) | |
Main industries | |
External | |
Exports | US$722.8 billion (2022)[22] |
Export goods | motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity, aluminum |
Main export partners |
|
Imports | US$719.3 billion (2022)[24] |
Import goods | machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable consumer goods |
Main import partners |
|
FDI stock | |
$1.4 billion (Q3 2021)[27] | |
Gross external debt | $3.251 trillion (Q3 2021)[28] |
Public finances | |
106.6% of GDP (2022)[29] | |
−1% (of GDP) (2017 est.)[8] | |
Revenues | 649.6 billion (2017 est.)[8] |
Expenses | 665.7 billion (2017 est.)[8] |
Economic aid | donor: ODA, US$7.8 billion (2022)[30] |
US$118.2 billion (January 2024)[34][35] | |
Canada has a strong cooperative banking sector, with the world's highest per-capita membership in credit unions.[42] It ranks low in the Corruption Perceptions Index (14th in 2023)[43] and "is widely regarded as among the least corrupt countries of the world".[44] It ranks high in the Global Competitiveness Report (14th in 2019)[45] and Global Innovation Indexes (15th in 2022).[46] Canada's economy ranks above most Western nations on The Heritage Foundation's Index of Economic Freedom[47] and experiences a relatively low level of income disparity.[48] The country's average household disposable income per capita is "well above" the OECD average.[49] Canada ranks among the lowest of the most developed countries for housing affordability[50][51] and foreign direct investment.[52][51] Among OECD members, Canada has a highly efficient and strong social security system; social expenditure stood at roughly 23.1% of GDP.[4][53][3]
Since the early 20th century, the growth of Canada's manufacturing, mining, and service sectors has transformed the nation from a largely rural economy to an urbanized, industrial one.[54] Like many other developed countries, the Canadian economy is dominated by the service industry, which employs about three-quarters of the country's workforce.[55] Among developed countries, Canada has an unusually important primary sector, of which the forestry and petroleum industries are the most prominent components.[56] Many towns in northern Canada, where agriculture is difficult, are sustained by nearby mines or sources of timber.[57] Canada spends around 1.70% of GDP on advance research and development across various sectors of the economy.[58][59]
Canada's economic integration with the United States has increased significantly since World War II.[60] The Automotive Products Trade Agreement of 1965 opened Canada's borders to trade in the automobile manufacturing industry.[61] In the 1970s, concerns over energy self-sufficiency and foreign ownership in the manufacturing sectors prompted the federal government to enact the National Energy Program (NEP) and the Foreign Investment Review Agency (FIRA).[62] The government abolished the NEP in the 1980s and changed the name of FIRA to Investment Canada to encourage foreign investment.[63] The Canada – United States Free Trade Agreement (FTA) of 1988 eliminated tariffs between the two countries, while the North American Free Trade Agreement (NAFTA) expanded the free-trade zone to include Mexico in 1994 (later replaced by the Canada–United States–Mexico Agreement).[64] As of 2023, Canada is a signatory to 15 free trade agreements with 51 different countries.[65]
Canada is one of the few developed nations that are net exporters of energy.[56][66] Atlantic Canada possess vast offshore deposits of natural gas,[67] and Alberta hosts the fourth-largest oil reserves in the world.[68] The vast Athabasca oil sands and other oil reserves give Canada 13 percent of global oil reserves, constituting the world's third or fourth-largest.[69] Canada is additionally one of the world's largest suppliers of agricultural products; the Canadian Prairies are one of the most important global producers of wheat, canola, and other grains.[70] The country is a leading exporter of zinc, uranium, gold, nickel, platinoids, aluminum, steel, iron ore, coking coal, lead, copper, molybdenum, cobalt, and cadmium.[71][72] Canada has a sizeable manufacturing sector centred in southern Ontario and Quebec, with automobiles and aeronautics representing particularly important industries.[73] The fishing industry is also a key contributor to the economy.[74]