Canada Economy Profile 2009

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, its principle trading partner. Canada enjoys a substantial trade surplus with the US, which absorbs nearly 80% of Canadian exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, uranium, and electric power. Given its great natural resources, skilled labor force, and modern capital plant, Canada has enjoyed solid economic growth, and prudent fiscal management has produced consecutive balanced budgets from 1997 to 2007. In 2008, growth slowed sharply as a result of the global economic downturn, US housing slump, plunging auto sector demand, and a drop in world commodity prices. Public finances, too, are set to deteriorate for the first time in a decade. Tight global credit conditions have further restrained business and housing investment, despite the conservative lending practices and strong capitalization that made Canada's major banks among the most stable in the world.

GDP (purchasing power parity)

$1.3 trillion (2008 est.)
$1.295 trillion (2007 est.)
$1.263 trillion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$1.511 trillion (2008 est.)

GDP - real growth rate

0.4% (2008 est.)
2.5% (2007 est.)
2.9% (2006 est.)

GDP - per capita (PPP)

$39,100 (2008 est.)
$39,300 (2007 est.)
$38,700 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 2%
industry: 28.4%
services: 69.6% (2008 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)

Labor force

18.22 million (2008 est.)

Labor force - by occupation

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

Unemployment rate

6.2% (2008 est.)
6% (2007 est.)

Household income or consumption by percentage share

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

Distribution of family income - Gini index

32.1 (2005)
31.5 (1994)

Investment (gross fixed)

22.6% of GDP (2008 est.)

Budget

revenues: $594.1 billion
expenditures: $573.7 billion (2008 est.)

Public debt

63.8% of GDP (2008 est.)
64.2% of GDP (2004 est.)

Inflation rate (consumer prices)

2.4% (January 2009 est.)
2.1% (2007 est.)

Central bank discount rate

1.75% (31 December 2008)
4.5% (31 December 2007)

Commercial bank prime lending rate

NA% (31 December 2008)
6.1% (31 December 2007)

Stock of money

$NA (31 December 2008)
$391.6 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$1.381 trillion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$2.382 trillion (31 December 2007)

Industries

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

Industrial production growth rate

-2.8% (2008 est.)

Electricity - production

612.6 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 28%
hydro: 57.9%
nuclear: 12.9%
other: 1.3% (2001)

Electricity - consumption

530 billion kWh (2006 est.)

Electricity - exports

50.12 billion kWh (2007 est.)

Electricity - imports

19.66 billion kWh (2007 est.)

Oil - production

3.425 million bbl/day (2007 est.)

Oil - consumption

2.371 million bbl/day (2007 est.)

Oil - imports

1.229 million bbl/day (2005)

Oil - exports

2.225 million bbl/day (2005)

Oil - proved reserves

178.6 billion bbl
note: includes oil sands (1 January 2008 est.)

Natural gas - production

187 billion cu m (2007 est.)

Natural gas - consumption

92.9 billion cu m (2007 est.)

Natural gas - exports

107.3 billion cu m (2007 est.)

Natural gas - imports

13.2 billion cu m (2007 est.)

Natural gas - proved reserves

1.648 trillion cu m (1 January 2008 est.)

Current Account Balance

$7.61 billion (2008 est.)
$14.53 billion (2007 est.)

Agriculture - products

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

Exports

$459.1 billion (2008 est.)
$431.2 billion (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 77.7%, UK 2.7%, Japan 2.3% (2008)

Imports

$415.2 billion (2008 est.)
$386.6 billion (2007 est.)

Imports - commodities

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

Imports - partners

US 52.4%, China 9.8%, Mexico 4.1% (2008)

Reserves of foreign exchange and gold

$43.87 billion (31 December 2008 est.)
$41.08 billion (31 December 2007 est.)

Debt - external

$762.2 billion (31 December 2008)
$806.9 billion (31 December 2007)

Stock of direct foreign investment - at home

$433.4 billion (31 December 2008 est.)
$506.9 billion (31 December 2007 est.)

Stock of direct foreign investment - abroad

$538 billion (31 December 2008 est.)
$520.7 billion (31 December 2007 est.)

Market value of publicly traded shares

$NA (31 December 2008)
$2.187 trillion (31 December 2007)
$1.701 trillion (31 December 2006)

Economic aid - donor

ODA, $3.9 billion (2007)

Currency (code)

Canadian dollar (CAD)

Currency (code)

CAD

Exchange rates

Canadian dollars (CAD) per US dollar - 1.0364 (2008 est.), 1.0724 (2007), 1.1334 (2006), 1.2118 (2005), 1.301 (2004)

Fiscal year

1 April - 31 March