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flag Canada Canada: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

After declining due to global recession, Canada's GDP has rebounded with growth estimated at over 3% in 2010 due to the stimulus package, the recovery of foreign trade and the newfound confidence of Canadian households. The growth rate should slow down in 2011, reflecting among others the end of the stimulus measures and a lower household consumption, which are facing increased levels of debt.

After the beginnings of a recovery, the emphasis is now on structural reforms. The government's priority is to consolidate its budgetary position, which in some provinces the crisis has worsened to alarming proportions. Plans to cut spending have been developed. Health reform also figures at the forefront, as well as a reform of the system of unemployment benefits.

In fact, even though Canada is a rich country with a very good living standard, it now has to deal with a worrying growth of its unemployment rate, which was estimated at 8 % in 2010. 

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 1,337.581,577.04e1,758.681,826.241,894.89
GDP (Constant Prices, Annual % Change) -2.83.2e2.11.92.5
GDP per Capita (USD) 39,72846,30351,147e52,68154,225
General Government Balance (in % of GDP) -2.5-4.0-3.0e-1.9-1.0
General Government Gross Debt (in % of GDP) 83.384.0e84.184.282.3
Inflation Rate (%) 0.31.8e2.92.12.0
Unemployment Rate (% of the Labor Force) 8.38.07.67.77.2
Current Account (billions USD) -39.57-49.38e-58.63-69.66-66.60
Current Account (in % of GDP) -3.0-3.1e-3.3e-3.5-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Accounting for almost two thirds of the GDP, the service sector dominates the Canadian economy. Its most dynamic areas are: telecommunications, tourism, Internet (almost 65% of Canadian households regularly use the Internet) and the aeronautical industry.

The agricultural sector represents a little more than 2% of the GDP and employs less than 2% of the population. Canada is one of the largest exporters of agricultural products in the world, wheat in particular. It produces 10% of the world's GMO harvests. Fishing is an important sector. Canada is one of the main producers of minerals, namely nickel, zinc and uranium. The country also has large reserves of oil and natural gas.

Canada has 6 strong sectors of primary industry: renewable energies (mainly wind), forestry sector, hydrogen and fuel cells, mines, metals and minerals, fishing, oil and gas. The manufacturing sector represents approximately a third of the GDP.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 2.4 21.5 76.5
Value Added (in % of GDP) 1.6 31.8 66.5
Value Added (Annual % Change) -9.5 -10.1 0.6

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Canadian dollar (CAD) - Average Annual Exchange Rate For 1 USD 1.131.071.071.141.03

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Canada on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
80.8/100
Position:
Free
World Rank:
6/179
Regional Rank:
1/3

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Canada is a country open to outside and trade represents more than 60 % of its GDP.

The United States takes about 80% of Canadian exports. Canada is the United States' biggest foreign energy supplier, including the supply of oil, gas, uranium and electric power. Its other main trading partners are the European Union, Japan, China and Mexico.

As an effect of the global economic crisis, the Canadian trade balance has turned negative, as exports were falling quickly and imports began to recover much less rapidly. Exports have been stagnating in 2010, while imports have risen, thus creating a trade deficit.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 359,000390,188419,011329,905401,540
Exports of Goods (million USD) 388,178420,693456,471316,724387,155
Imports of Services (million USD) 71,84181,72387,95377,57989,383
Exports of Services (million USD) 58,88063,78566,37857,47666,302
Imports of Goods and Services (Annual % Change) 4.95.91.2-13.9-
Exports of Goods and Services (Annual % Change) 0.7----
Imports of Goods and Services (in % of GDP) 33.633.033.730.4-
Exports of Goods and Services (in % of GDP) 36.135.035.328.7-
Trade Balance (million USD) 43,65543,77043,803-4,394-8,682
Trade Balance (Including Service) (million USD) 31,24826,32023,371-23,572-30,770
Foreign Trade (in % of GDP) 69.868.069.059.1-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
United States 74.8%
United Kingdom 4.1%
China 3.3%
Japan 2.3%
Mexico 1.3%
See More Countries 14.1%
Main Suppliers
(% of Imports)
2010
United States 50.4%
China 11.0%
Mexico 5.5%
Japan 3.3%
Germany 2.8%
See More Countries 27.0%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 13.0%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 9.5%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 4.6%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 3.7%
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 3.5%
See More Products 65.6%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 5.9%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.7%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 4.5%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 2.9%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 2.4%
See More Products 78.6%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Treasury Board of Canada
Department of Finance Canada
Foreign Affairs and International Trade Canada (DFAIT)
Industry Canada
Agriculture and Agri-Food Canada (AAC)
Statistical Office
Statistics Canada
Central Bank
Bank of Canada
Stock Exchange
Montreal Stock Exchange
Canadian Stock Review
TSX Group - Toronto Stock Exchange
Search Engines
Altavista Canada
Yahoo! Canada
AOL Canada
Canada 411
CAN Links
Francité
La Page Montréal
La Toile du Québec
Maple Square
Sympatico (Lycos)
The Canadianeh
Trouvez
Economic Portals
Quebec social economy
Canadian Arboriginals Portal
Libraries of the UQAM
Canoe - Portal for information on news and entertainment

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Political Outline

Executive Power
Queen Elizabeth II is the Head of State. She appoints the Governor General of the country for 5 years. The Governor General appoints the Prime Minister as well as the Ministry (however, this is chosen by the Prime Minister). The Prime Minister is the head of the government. He holds the executive power. The leader of the majority party or coalition in the House of Commons is automatically chosen to be Prime Minister. The Prime Minister and his Ministry stay in power as long as they have the support of the majority in the House of Commons.
Legislative Power
The legislative power in Canada is composed of a two-chamber federal parliament made up of: the Senate (upper house) whose members are appointed by the Governor General on the advice of the Prime Minister; the House of Commons (lower house), whose members are elected by universal suffrage. The Governor General calls a general election when the Prime Minister advises him to do so. Most legislative practices are derived from the British Parliament.
Main Political Parties
The four main parties in Canada are: the Conservative Party of Canada (CPC), the Liberal Party of Canada (LPC), the New Democratic Party (NDP), and the Bloc Québécois.
Current Political Leaders
Governor General: David Johnston (since October 2010)
Prime Minister: Stephen HARPER (since February 2006) – Conservative Party
Next Election Dates
House of Commons: January 2011
 

Indicator of Freedom of the Press

World Rank:
21/178
Evolution:
2 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012