Canada Economy Profile 2008

Economy - overview

As an affluent, high-tech industrial society in the trillion-dollar class, Canada resembles the US in its market-oriented economic system, pattern of production, and affluent living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US. Given its great natural resources, skilled labor force, and modern capital plant, Canada enjoys solid economic prospects. Top-notch fiscal management has produced consecutive balanced budgets since 1997, although public debate continues over the equitable distribution of federal funds to the Canadian provinces. Exports account for roughly a third of GDP. Canada enjoys a substantial trade surplus with its principal trading partner, the US, which absorbs 80% of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. During 2007, Canada enjoyed good economic growth, moderate inflation, and the lowest unemployment rate in more than three decades.

GDP (purchasing power parity)

$1.274 trillion (2007 est.)

GDP (official exchange rate)

$1.406 trillion (2007 est.)

GDP - real growth rate

2.7% (2007 est.)

GDP - per capita (PPP)

$38,200 (2007 est.)

GDP - composition by sector

agriculture: 2.1%
industry: 28.8%
services: 69.1% (2007 est.)

Population below poverty line

10.8%; note - this figure is the Low Income Cut-Off (LICO), a calculation that results in higher figures than found in many comparable economies; Canada does not have an official poverty line (2005)

Household income or consumption by percentage share

lowest 10%: 2.6%
highest 10%: 24.8% (2000)

Inflation rate (consumer prices)

2.4% (2007 est.)

Investment (gross fixed)

22% of GDP (2007 est.)

Labor force

17.9 million (2007 est.)

Labor force - by occupation

agriculture 2%, manufacturing 13%, construction 6%, services 76%, other 3% (2006)

Unemployment rate

5.9% (2007 est.)

Distribution of family income - Gini index

32.1 (2005)

Budget

revenues: $565.8 billion
expenditures: $551.2 billion (2007 est.)

Public debt

64% of GDP (2007 est.)

Industries

transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum and natural gas

Industrial production growth rate

1.6% (2007 est.)

Electricity - production

609.6 billion kWh (2005)

Electricity - consumption

540.2 billion kWh (2005)

Electricity - exports

42.93 billion kWh (2005)

Electricity - imports

19.33 billion kWh (2005)

Oil - production

3.092 million bbl/day (2005)

Oil - consumption

2.29 million bbl/day (2005)

Oil - imports

1.185 million bbl/day (2004)

Oil - exports

2.274 million bbl/day (2004)

Oil - proved reserves

178.8 billion bbl
note: includes oil sands (1 January 2006 est.)

Natural gas - production

178.2 billion cu m (2005 est.)

Natural gas - consumption

92.76 billion cu m (2005 est.)

Natural gas - exports

101.9 billion cu m (2005 est.)

Natural gas - imports

9.403 billion cu m (2005)

Natural gas - proved reserves

1.537 trillion cu m (1 January 2006 est.)

Current Account Balance

$28.46 billion (2007 est.)

Agriculture - products

wheat, barley, oilseed, tobacco, fruits, vegetables; dairy products; forest products; fish

Exports

$440.1 billion f.o.b. (2007 est.)

Exports - commodities

motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity, aluminum

Exports - partners

US 81.6%, UK 2.3%, Japan 2.1% (2006)

Imports

$394.4 billion f.o.b. (2007 est.)

Imports - commodities

machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable consumer goods

Imports - partners

US 54.9%, China 8.7%, Mexico 4% (2006)

Reserves of foreign exchange and gold

$39.31 billion (2007 est.)

Debt - external

$758.6 billion (30 June 2007)

Stock of direct foreign investment - at home

$398.4 billion (2006 est.)

Stock of direct foreign investment - abroad

$458.1 billion (2006 est.)

Market value of publicly traded shares

$1.481 trillion (2005)

Economic aid - donor

ODA, $3.9 billion (2007)

Currency (code)

Canadian dollar (CAD)

Exchange rates

Canadian dollars per US dollar - 1.0724 (2007), 1.1334 (2006), 1.2118 (2005), 1.301 (2004), 1.4011 (2003)

Fiscal year

1 April - 31 March