Canada

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 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 downturn in the United States in 2001 had a negative impact on the Canadian economy. Real growth averaged nearly 3% during 1993-2000, but declined in 2001. Unemployment is up, with contraction in the manufacturing and natural resource sectors. Nevertheless, with 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 possibility 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.

GDP: purchasing power parity - $875 billion (2001 est.)

GDP - real growth rate: 1.9% (2001 est.)

GDP - per capita: purchasing power parity - $27,700 (2001 est.)

GDP - composition by sector: agriculture: 2%
                                              industry: 29%
                                              services: 69% (2001 est.)

Population below poverty line: NA% 

Household income or consumption by percentage share: lowest 10%: 2.8%
                                                                                     highest 10%: 23.8% (1994)

Distribution of family income - Gini index: 31.5 (1994)

Inflation rate (consumer prices): 2.8% (2001 est.)

Labor force: 16.4 million (2001 est.)

Labor force - by occupation: services 74%, manufacturing 15%, construction 5%, agriculture 3%, other 3% (2000)

Unemployment rate: 7.2% (2001 est.)

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: 0.5% (2001 est.)

Electricity - production: 576.218 billion kWh (2000)

Electricity - production by source: fossil fuel: 25.3%
                                                   hydro: 61.22%
                                                   other: 1.56% (2000)
                                                   nuclear: 11.92%

Electricity - consumption: 499.766 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: $273.8 billion (f.o.b., 2001 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 86%, Japan 3%, UK, Germany, South Korea, Netherlands, China (1999)

Imports: $238.3 billion (f.o.b., 2001 est.)

Imports - commodities: machinery and equipment, motor vehicles and parts, crude oil, chemicals, electricity, durable consumer goods

Imports - partners: US 74%, EU 9%, Japan 3% (2000)

Debt - external: $1.9 billion (2000)

Economic aid - donor: ODA, $1.3 billion (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