Canada Economy Profile 2002

Economy - overview

As an affluent, high-tech industrial society, Canada today closely resembles the US in its market-oriented economic system, pattern of production, and high 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. As a result of the close cross-border relationship, the economic sluggishness in the United States in 2001-02 had a negative impact on the Canadian economy. Real growth averaged nearly 3% during 1993-2000, but declined in 2001, with moderate recovery in 2002. Unemployment is up, with contraction in the manufacturing and natural resource sectors. Nevertheless, given its great natural resources, skilled labor force, and modern capital plant Canada enjoys solid economic prospects. Two shadows loom, the first being the continuing constitutional impasse between English- and French-speaking areas, which has been raising the spectre of a split in the federation. Another long-term concern is the flow south to the US of professionals lured by higher pay, lower taxes, and the immense high-tech infrastructure. A key strength in the economy is the substantial trade surplus.

GDP (purchasing power parity)

purchasing power parity - $923 billion (2002 est.)

GDP - real growth rate

3.4% (2002 est.)

GDP - per capita (PPP)

purchasing power parity - $29,400 (2002 est.)

GDP - composition by sector

agriculture: 2%
industry: 27%
services: 71% (2001 est.)

Population below poverty line

NA%

Household income or consumption by percentage share

lowest 10%: 3%
highest 10%: 24% (1994) (1994)

Inflation rate (consumer prices)

2.2% (2002 est.)

Labor force

16.4 million (2001 est.)

Labor force - by occupation

services 74%, manufacturing 15%, construction 5%, agriculture 3%, other 3% (2000) (2000)

Unemployment rate

7.6% (2002 est.)

Distribution of family income - Gini index

32 (1994)

Budget

revenues: $178.6 billion
expenditures: $161.4 billion, including capital expenditures of $NA (FY00/01 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

2.2% (2002 est.)

Electricity - production

576.22 billion kWh (2000)

Electricity - production by source

fossil fuel: 25%
hydro: 61%
nuclear: 12%
other: 2% (2000)

Electricity - consumption

499.77 billion kWh (2000)

Electricity - exports

48.802 billion kWh (2000)

Electricity - imports

12.685 billion kWh (2000)

Agriculture - products

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

Exports

$260.5 billion f.o.b. (2002 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 84.6%, Japan 2.2%, UK 1.6%, other EU 2.2% (2000)

Imports

$229 billion f.o.b. (2002 est.)

Imports - commodities

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

Imports - partners

US 72.7%, UK 3.4%, other EU 3.2%, Japan 3.0% (2001)

Debt - external

$1.9 billion (2000) (2000)

Economic aid - donor

ODA, $1.3 billion (1999) (1999)

Currency

Canadian dollar (CAD)

Currency (code)

CAD

Exchange rates

Canadian dollars per US dollar - 1.6003 (January 2002), 1.5488 (2001), 1.4851 (2000), 1.4857 (1999), 1.4835 (1998), 1.3846 (1997)

Fiscal year

1 April - 31 March