Economy of Canada

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Economy of Canada
Flag of Canada.svg
currency 1 Canadian dollar (CAD) = 100 cents (c)
Fiscal year April 1st - March 31st
Trade organizations NAFTA , WTO , OECD
statistics
GDP ( PPP ) 16.
GDP (PPP) (2016) USD 1.683 trillion
GDP growth (2017) 3.0% p. a.
GDP per capita (2016) USD 42,225
GDP by sector (2016) Agriculture (1.6%)
Industry (27.7%)
Services (70.7%)
Inflation rate (2016) 1.4%
Poverty rate (2008) 9.4%
Employed (2017) 19.52 million
Employed persons by sector (2000) Services (74%)
Industry (23%)
Agriculture (3%)
Unemployment rate (2016) 7.0%
Trading partner
Exports (2016) USD 433 billion
Main trading partner (2016) USA 76.4%, People's Republic of China 4.1%, Japan 1.6%
Imports (2016) USD 444 billion
Main trading partner (2016) USA 52.2%, People's Republic of China 12.1%, Mexico 6.2%
Public finances
National debt (2016) CAD 1,873 billion (92.4% of GDP)
Income (2017) $ 623.700 billion
Issues (2017) $ 657.300 billion
Development Aid (2004) CAD 2.6 billion

Canada is one of the wealthiest countries in the world; it is a member of the WTO , the OECD , the IMF , the World Bank and the G7 . In terms of gross domestic product , Canada is intenth placewith 1,529.760 billion US dollars . Intermsof purchasing power parity , it isin 16th placewith 1,682.503 billion international dollars and in 18th place for gross domestic product per capita with 42,225 US dollars (as of 2016). In the Global Competitiveness Index , which measures a country's competitiveness, Canada ranks 14th out of 137 countries (2017-18). In the ranking of the Human Development Index publishedby the United Nations Development Program , which also takes into account non-economic factors, Canada was tenth out of 188 countries evaluated in 2016.

Canada is regarded as a social market economy , but the economic room for maneuver is very large; in the Index of Economic Freedom of the Heritage Foundation was Canada in 2017 to seventh place and was rated higher than most western European countries.

As in other developed countries, the Canadian economy is dominated by the service sector. However, the share of the primary sector is above average , which is due to the wealth of natural resources and their exploitation.

The foreign trade accounts for a large part of the Canadian economy. Exports are 36.7% and imports 32.8% of GDP. By far the most important trading partner is the USA with 76.4% of exports and 65.0% of imports in 2007. Canada ranks fifth in world foreign trade statistics after the EU , the USA, Japan and China . Foreign trade is largely free; foreign investments are limited to minority holdings in only a few key areas.

Economic sectors

raw materials

Due to the wealth of raw materials, mining plays an important economic role. Canada is the world's largest producer of zinc , uranium , potassium carbonate , cadmium , sulfur and nickel . The country ranks third in the mining of aluminum , titanium , cobalt , molybdenum , gold and lead . Around 80% of the exploited raw materials are exported, mainly to the USA .

The mineral deposits are distributed very differently. For example, all of Canada's iron ore is mined in Newfoundland and Labrador and northwest Québec . The gold and copper is degrading especially in northern Ontario spread of coal mining in Alberta , British Columbia and Nova Scotia . The mining of diamonds is on the Northwest Territories concentrated uranium mining in Saskatchewan . Québec supplies a fifth of the world's asbestos demand , and Labrador has the world's largest nickel deposit.

The Giant Mine at Yellowknife in the Northwest Territories

Thanks to the large forest areas and the apparently inexhaustible raw material potential associated with them, forestry plays an important role. This is especially common in British Columbia, Ontario and Québec. Canada is the world's largest producer of wood pulp , pulp , paper and cardboard . Maple syrup , which is a typical component of North American cuisine, is mainly produced in the eastern provinces .

The relatively high reliance on natural resources affects Canada's economy and society in a number of ways. In the sparsely populated areas of the north, where agriculture is difficult or impossible to practice, the existence of numerous settlements depends directly on mineral or wood deposits. The uneven distribution of natural resources causes the development of different economic structures, which leads to a strong regionalism. At the same time, the country as a whole is closely integrated into the world economy through exports.

energy

Oil derrick in Northern Alberta

Canada is one of the few developed countries that is a net exporter of energy. Most significant are the extensive deposits of oil and natural gas in Alberta (partly also in the neighboring provinces of British Columbia and Saskatchewan). With the Athabasca oil sands in northern Alberta, Canada has the world's third largest reserves of crude oil after Venezuela and Saudi Arabia . Since the beginning of the 21st century, the Atlantic provinces , especially Newfoundland and Labrador, have developed into a second center for oil and gas production (offshore drilling). The oil is transported in pipelines , the refineries are mainly located in Edmonton , Montreal and Sarnia . In several provinces, in particular Québec, British Columbia and Ontario, but also in Alberta and Manitoba , hydropower is a renewable and relatively environmentally friendly energy source in large quantities. Ontario is home to 16 of the country's 18 active nuclear reactors .

One area of ​​tension in Canadian domestic politics is the fact that the greatest supply of energy sources is to be found in the rather sparsely populated west, while the greatest demand is in southern Ontario and Québec, where there are few natural energy resources. Transportation of oil from Alberta to the US is cheaper than to eastern Canada, which means that these provinces have to import large quantities of oil. To compensate for this discrepancy, the federal government tried to use the National Energy Program to force Alberta to sell crude oil to eastern Canada on favorable terms. The program failed when oil prices plummeted in the mid-1980s.

Agriculture and fishing

→ See also: Viticulture in Canada , Seal Hunting in Canada , Whaling Today

Granary in Alberta
Fishing port on Prince Edward Island

Although only 8% of the state's land is used for agriculture, Canada is one of the world's most important exporters of agricultural products. Canadian agriculture can be divided into five main groups: Grains and oilseeds (34% of agricultural yields) and meat products and live cattle (27%) are primarily intended for export . Dairy farming (12%), horticultural fruit and vegetables (9%) and poultry and eggs (8%) are destined for the home market . The factories are highly technical and mechanized. While the farms on the prairies average over 300 hectares, the farms in eastern Canada average less than 100 hectares.

In contrast to many other countries, Canadian farmers have to assert themselves in the international market for the most part without government subsidies. Only products that are intended for the home market enjoy protection through import duties. The regional distribution is striking: while the export-oriented branches of agriculture are concentrated in the prairie provinces , the provinces in the east mainly produce for the home market. An exception is the viticulture concentrated in Ontario (Canada is the world's largest exporter of ice wines ).

The rich fishing grounds of the Pacific and Atlantic form the basis of Canada's fishing industry , which exports salmon , cod , American lobster and herring , among others . The province of Nova Scotia leads the way with 30% of the income, followed by British Columbia and Newfoundland (20% each). The Newfoundland Bank is one of the most productive fishing grounds in the world. Although there is a not insignificant inland fishery, it is mainly to be regarded as sport fishing . Fur trapping and breeding are still important, but are in decline.

Industry

On the basis of its wealth of raw materials, Canada has built up a wide-ranging industry with a focus on automobile and aircraft construction , the metal industry , food processing, and wood and paper processing. The chemical and electrotechnical industries, and increasingly the high-tech sector, also play an important role. Historically, however, industry in Canada has always been subordinate to other economic sectors, if by no means negligible. For this reason, the country was far less affected by deindustrialization in the 1970s and 1980s than other industrialized nations.

Around three quarters of all industrial operations are in the provinces of Ontario and Québec. The final production is concentrated there, while the intermediate processing of raw materials dominates in the other provinces. Subsidiaries of the American and Japanese automotive industries as well as suppliers play an important role. What is attractive for these groups is the high level of education and, at the same time, somewhat lower wages than in the USA. Independent Canadian industrial groups are in the minority.

Services

Headquarters of the Royal Bank of Canada , the largest company in the country

The service sector is diverse. It employs around three quarters of all employed people and generates around two thirds of the gross domestic product. Wholesaling and retailing make up the largest share, followed by finance, which includes banks, insurance companies and real estate. This part of the economy is concentrated in large urban centers like Toronto , Calgary, and Montreal . Seven of the ten largest Canadian companies are in the banking and insurance sectors.

Also of great importance are education and health, both of which are almost entirely under the control of the state. Information technology and the entertainment industry are playing an increasingly important role . The tourism is the country's fifth largest industry, with the vast majority of tourists comes from the USA.

currency

The national currency of Canada is the Canadian dollar , which is issued by the Bank of Canada . One dollar is divided into 100 cents. The table below shows the average exchange rates over the past few years. The striking increase in value against the US dollar is particularly striking .

year 1 USD 1 EUR 1 CAD 1 CAD
2000 C $ 0.674 C $ 0.730 US $ 1,485 € 1,373
2001 C $ 0.646 C $ 0.722 US $ 1,549 € 1,389
2002 C $ 0.637 C $ 0.676 US $ 1,570 € 1,485
2003 C $ 0.716 C $ 0.633 US $ 1,401 € 1,583
2004 C $ 0.770 C $ 0.619 US $ 1,301 € 1,617
2005 C $ 0.826 C $ 0.665 US $ 1,212 € 1,510
2006 C $ 0.882 C $ 0.703 US $ 1,135 € 1,425
2007 C $ 0.936 C $ 0.682 US $ 1,074 € 1.469

Regional differences

Canada's provinces and territories have consistently high GDP levels , but the differences are wide. The most populous province of Ontario alone would be the 25th largest economy in the world compared to other countries. The GDP values ​​of the territories are comparable to those of smaller island states, but also smaller than those of numerous Canadian cities.

There are also big differences in GDP per capita. Mainly because of the petroleum industry, Alberta has more than double that of Prince Edward Island . To offset this imbalance, the federal government collects compensation payments from the richer provinces (particularly Ontario and Alberta) and distributes them to the poorer ones. In absolute terms, Québec has always been the largest recipient of compensation payments. In the middle of the range are British Columbia and Saskatchewan , which frequently switch between paying and receiving. Newfoundland and Labrador , traditionally a poorly prosperous province, has experienced far higher GDP growth than the national average since the beginning of the 21st century due to several offshore oil production projects and will therefore no longer receive compensation payments from the 2008 fiscal year. The GDP of the territories is based on an above-average share of compensation payments, due to the far higher cost of living in the arctic climate of the north.

Comparison of provinces and territories (values ​​in Canadian dollars)

Province or
territory 		GDP in
millions (2007) 		Share
in% 		GDP per
capita (2007) 		GDP (PPP) per
capita (2005)
Alberta Alberta 259.941 16.97 74,825 69,789
British Columbia British Columbia 190.214 12.42 43,425 41,689
Manitoba Manitoba 48,586 3.17 40,942 38.001
New BrunswickNew Brunswick New Brunswick 26,410 1.72 35,223 33,664
Newfoundland and Labrador Newfoundland and Labrador 29,034 1.90 57,345 47,520
Nova Scotia Nova Scotia 33,296 2.17 35,645 34.210
OntarioOntario Ontario 582.019 38.00 45,456 43,847
QuebecQuebec Quebec 298.157 19.47 38,717 37,138
Prince Edward Island Prince Edward Island 4538 0.30 32,741 31,278
Saskatchewan Saskatchewan 51.166 3.34 51,325 45,718
Northwest TerritoriesNorthwest Territories Northwest Territories 4580 0.30 107,511 97.923
NunavutNunavut Nunavut 1371 0.09 44,083 39,383
YukonYukon Yukon 1687 0.11 54,419 51,154

Key figures

Various macroeconomic indicators of the Canadian economy from 1980 to 2017. All GDP values ​​are given in dollars.

year GDP
(billion US dollars) 		GDP per capita
(in US dollars) 		GDP growth
(real) 		Inflation rate
(in percent) 		Unemployment rate
(in percent) 		Public debt
(in% of GDP)
1980 287.3 11,739   2.1%   10.2% 7.5% 45.1%
1981   325.1   13,116   3.5%   12.5%   7.6%   46.6%
1982   334.2   13,323   −3.2%   10.8%   11.1%   52.3%
1983   356.4   14,067   2.6%   5.8%   12.0%   57.8%
1984   390.9   15,284   5.9%   4.3%   11.4%   60.9%
1985   422.5   16,369   4.7%   4.0%   10.5%   65.9%
1986   440.4   16,894   2.2%   4.2%   9.6%   70.1%
1987   470.1   17,809   4.1%   4.4%   8.8%   70.5%
1988   508.1   18,994   4.4%   4.0%   7.8%   70.5%
1989   540.2   19,848   2.3%   7.5%   5.3%   71.8%
1990   561.0   20,302   0.2%   4.8%   8.2%   74.5%
1991   567.3   20.271   −2.1%   5.6%   10.3%   81.5%
1992   585.4   20,668   0.9%   1.5%   11.2%   89.2%
1993   615.2   21,473   2.7%   1.9%   11.4%   95.0%
1994   656.6   22,672   4.5%   0.1%   10.4%   97.8%
1995   688.2   23,518   2.7%   2.2%   9.5%   100.4%
1996   712.1   24,081   1.6%   1.6%   9.6%   100.6%
1997   755.3   25,287   4.3%   1.6%   9.1%   95.6%
1998   793.1   26,328   3.9%   1.0%   8.3%   93.6%
1999   846.8   27,885   5.2%   1.7%   7.6%   89.3%
2000   910.9   29,723   5.2%   2.7%   6.8%   80.7%
2001   948.2   30,615   1.8%   2.5%   7.2%   81.8%
2002   991.7   31,676   3.0%   2.3%   7.7%   79.9%
2003   1,029.7   32,585   1.8%   2.7%   7.6%   76.2%
2004   1,090.7   34,193   3.1%   1.8%   7.2%   72.1%
2005   1,161.8   36,080   3.2%   2.2%   6.8%   70.9%
2006   1,229.0   37,781   2.6%   2.0%   6.3%   70.1%
2007   1,287.7   39,201   2.1%   2.1%   6.0%   66.8%
2008   1,326.1   39,944   1.0%   2.4%   6.2%   67.8%
2009   1,296.7   38,615   −3.0%   0.1%   8.4%   79.3%
2010   1,353.1   39,844   3.1%   1.8%   8.0%   81.1%
2011   1,424.3   41,524   3.1%   3.1%   7.5%   81.5%
2012   1,475.9   42,537   1.7%   1.5%   8.1%   84.8%
2013   1,536.8   43,787   2.5%   0.9%   7.1%   85.8%
2014   1,609.1   45,345   2.9%   1.9%   6.9%   85.0%
2015   1,642.8   45,884   1.0%   1.1%   6.9%   90.5%
2016   1,687.3   46,606   1.4%   1.4%   7.0%   91.4%
2017   1,769.2   48,265   3.0%   2.1%   6.3%   89.7%

FTA

The following free trade agreements are currently in force:

Ongoing negotiations on free trade agreements:

See also

Web links

Individual evidence

  1. ↑ a b c d e Report for Selected Countries and Subjects. Retrieved March 9, 2018 (American English).
  2. ↑ a b c d e f g h The World Factbook - Central Intelligence Agency. Accessed March 9, 2018 .
  3. ↑ a b Budget 2008 - Budget in Letter ( Memento of March 1, 2008 in the Internet Archive ) - Canadian Treasury Department, February 2008
  4. ^ World Economic Outlook Database - International Monetary Fund , October 2007.
  5. ↑ Country / Economy Profiles . In: Global Competitiveness Index 2017–2018 . ( weforum.org [accessed December 4, 2017]).
  6. ↑ Canada - Country Profile: Human Development Indicators. United Nations Development Program (UNDP), accessed on September 18, 2017 .
  7. ↑ 2017 Index Of Economic Freedom. Heritage Foundation , accessed September 18, 2017 .
  8. ^ Imports, Exports and Trade Balance of Goods ( Memento of June 18, 2006 in the Internet Archive ) - Statistics Canada, April 2008.
  9. ^ Commodity Trade Statistics Database
  10. ↑ JOHN Sandlos, ARN KEELING: Mining ( English, French ) In: The Canadian Encyclopedia . March 4, 2015 ..
  11. ↑ FLC REED: Forest Forest Economics ( English, French ) In: The Canadian Encyclopedia . March 4, 2015 ..
  12. ↑ GV WELL BURN: Forest Harvesting ( English, French ) In: The Canadian Encyclopedia . March 4, 2015 ..
  13. ↑ MARK KUHLBERG: Pulp and Paper Industry ( English, French ) In: The Canadian Encyclopedia . March 4, 2015 ..
  14. ↑ AGRI-FOOD CANADA, LEO H. WERNER, AGRICULTURE: Maple Sugar Industry ( English, French ) In: The Canadian Encyclopedia . March 4, 2015 ..
  15. ↑ Canadian Federation of Agriculture - Commodities ( Memento April 10, 2007 in the Internet Archive )
  16. ↑ toilet MACKENZIE: Fisheries ( English, French ) In: The Canadian Encyclopedia . March 4, 2015 ..
  17. ↑ oanda.com - Comparison of historical exchange rates
  18. ↑ Gross domestic product, expenditure-based, by province and territory ( Memento of April 20, 2008 in the Internet Archive ) - Statistics Canada, April 28, 2008
  19. ^ Report for Selected Countries and Subjects. Retrieved September 7, 2018 (American English).
  20. ↑ Overview of Economic Agreements and Negotiations - as of April 2013 - Canadian Department of Foreign and Foreign Trade.
  21. ↑ provisionally in force, still requires ratification by each individual parliament of an EU member state for full application