Canada is the world’s second largest country after Russia and the world’s largest country bordering only one country. The country has a unique economic system that combines the private and public enterprises and the highest economic freedom in the world with a public to private property ratio of 40:60. Canada is one of the most prosperous nations in the world with its GDP ranking 10th nominally and 15th by PPP. Canada is a member of the G7 and OECD. Although Canada utilizes about 8% of its country for agriculture, it is one of the world’s major exporters of Agricultural products. The country’s economy is dominated by the service industry that employs about three-quarters of the Canadians
Overview Of The Economy Of Canada
Canada has a GDP of $1.6trillion ranking 10th nominally and 15th by PPP. Canada has a GDP growth rate of an estimated 0.5% which is projected to grow to 2.2%. The GDP per capita in 2014 was $56100 ranking 10th nominally and 9th by PPP. Services contribute 69.8% to the GDP followed by industry at 28.5% and agriculture at 1.7%. Canada has an unemployment rate of 6.6%, an inflation of 1% and 12.9% of the population live below poverty line. The Canadian labor force is estimated to be 19 million people. The labor force per sector is estimated as follows: services with 76%, manufacturing 13%, construction 6%, agriculture 2%, and others make up 3% of the labor force. Canada has a public debt of $582 CAD which is 33.8% of the GDP. The revenues are estimated at $682.5 billion against expenses of about $750 billion. Canada has an estimated $65.82 billion in foreign reserves and donates an estimated $4.1 billion.
Main Industries Of Canada
The service industry is dominant in Canada employing three-quarters of the population. Other important industries include transport, timber, paper products, minerals, natural gas, fish products, and chemicals. The country is one of the leading producer natural minerals such as gold, nickel, aluminum, and crude oil. Canada has the second (or third, depending on the measurements taken) largest oil reserves in the world.
Major Exports Of Canada
The Canadian economy is highly reliant on international trade with the US being the largest trading partner. Canada earned $523.904 billion in 2015 from exports. The primary export goods include motor vehicles and their parts, industrial machinery, plastics, aircraft, telecommunications equipment, chemicals, fertilizers, wood pulp, timber, crude petroleum, natural gas, and aluminum.
Main Export Partners Of Canada
The main export partners include the US 75.2%, China 4.10%, Japan 1.93%, Mexico 1.51%, India 0.86%, and South Korea 0.81%.
Main Imports Of Canada
Canada spent $547.874 billion in 2015 on imports which include machinery and equipment, crude oil, chemicals, motor vehicles and parts, electricity, and durable consumer goods.
Main Import Partners Of Canada
Canada mainly imports goods from the US 66.28%, China 7.10%, Mexico 3.35%, Germany 2.73%, Japan 1.99%, the UK 1.58%, and South Korea 1.12%.
Challenges To The Economy Of Canada
Canada is over-reliant on natural resources which are unevenly distributed leading to the unequal growth of the regions. The exploitation of natural resources has had an adverse effect on the environment including the decline of codfish and salmon as well as forest cover.
What type of economy does Canada have?
Canada has a unique economic system that combines the private and public enterprises and the highest economic freedom in the world with a public to private property ratio of 40:60. Canada is one of the most prosperous nations in the world with its GDP ranking 10th nominally and 15th by PPP.
About the Author
Benjamin Elisha Sawe holds a Bachelor of Arts in Economics and Statistics and an MBA in Strategic Management. He is a frequent World Atlas contributor.
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