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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 contracting due to the global recession, Canada's GDP rebounded with growth estimated at over 3% in 2010 due to the economic stimulus measures, the recovery of foreign trade and the renewed confidence of households. In 2011, the rate of growth was uneven and generally weaker. Due to weak U.S. demand (on which Canada depends for its exports), high degree of household debt, the possible drop in property prices, and worries about the debt crisis in the eurozone, growth is expected to slow down in 2012.

As the only G7 country to have recovered its growth rate and jobs lost during the recession, Canada has a sound economic foundation. The government therefore plans to phase out tax incentives, setting itself the goal of balancing the 2015-16 budget by reducing spending while lowering taxes to stimulate growth and employment. Measures have been taken to monitor the rise of mortgage loans. The main danger is the possible worsening of the crisis in the eurozone and its impact on global financial markets. In the medium term, Canada will focus on improving the business environment and increasing productivity, in order to counter the growing trend of decreasing competitiveness. Another concern is population again, which has been increasing the costs of medical care.

Canada is a rich country with a very good living standard. Its unemployment rate, after having reached more than 8% in 2009 following the global recession, has again been decreasing, although it remains above its pre-crisis level.

 
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 Analyses about Canada on Globaltrade.net, the Directory for International Trade Service Providers.
 

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

Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

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

The United States receives 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. After having registered a trade surplus in September 2011, by the end of the year Canada's trade balance again worsened, since exports slowed down. The negative trade balance will probably remain, due to a weak economic recovery in the US and the difficulties experienced by the eurozone countries.

 
Foreign Trade Indicators 20072008200920102011
Imports of Goods (million USD) 390,188419,011329,905401,540462,435
Exports of Goods (million USD) 420,693456,471316,724387,155452,167
Imports of Services (million USD) 81,72387,95377,57989,96399,273
Exports of Services (million USD) 63,78566,37857,47667,43274,073
Imports of Goods and Services (Annual % Change) 5.91.2-13.9--
Imports of Goods and Services (in % of GDP) 33.033.730.4--
Exports of Goods and Services (in % of GDP) 35.035.328.7--
Trade Balance (million USD) 43,77043,803-4,394-8,682-
Trade Balance (Including Service) (million USD) 26,32023,371-23,572-30,770-
Foreign Trade (in % of GDP) 68.069.059.1--

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

 

Main Partner Countries

Main Customers
(% of Exports)
2011
United States 73.7%
United Kingdom 4.2%
China 3.8%
Japan 2.4%
Mexico 1.2%
See More Countries 14.7%
Main Suppliers
(% of Imports)
2011
United States 49.5%
China 10.8%
Mexico 5.5%
Japan 2.9%
Germany 2.9%
See More Countries 28.4%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2011
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 15.4%
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) 8.8%
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 3.9%
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 3.8%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 3.7%
See More Products 64.3%
Main Imports
(% of Imports)
2011
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 6.4%
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) 5.2%
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. 4.3%
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%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 2.7%
See More Products 77.7%

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:
10/179
Evolution:
11 places up compared to 2010

Source: Worldwide Press Freedom Index 2011, Reporters Without Borders

Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).

 

Indicator of Political Freedom

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

Map of freedom 2010
Source: Freedom House

Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

 

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Last Updates: May 2012