 Toronto, thefinancial centre of Canada | |
| Currency | Canadian dollar (CAD, C$) |
|---|---|
| April 1 – March 31 | |
Trade organizations | OECD,WTO,G-20,G7,USMCA,CPTPP,APEC and others |
Country group | |
| Statistics | |
| Population |  41,528,680 (Q1, 2025)[5] |
| GDP | |
| GDP rank | |
GDP growth | |
GDP per capita | |
GDP per capita rank | |
GDP by sector |
|
 1.6% (12 month change – September 2024)[8] | |
Population belowpoverty line |  3.2% (official, 2022;StatCan)[9] |
| 0.281low (2020, StatCan)[10][11] | |
| |
Labour force | |
| Unemployment | |
Average gross salary | C$6,809 / US$4,975 monthly[17] (2022) |
| C$5,065 / US$3,700 monthly[18][19] (2022) | |
Main industries | |
| External | |
| Exports | US$727.8 billion (2024)[20] |
Export goods | motor vehicles and parts,industrial machinery,aircraft,telecommunications equipment;chemicals,plastics,fertilizers;wood pulp,timber,crude petroleum, natural gas, electricity, aluminum |
Main export partners |
|
| Imports | US$733.7 billion (2024)[22] |
Import goods | machinery and equipment, motor vehicles and parts,crude oil, chemicals,electricity, durableconsumer goods |
Main import partners |
|
FDI stock | |
| $1.4 billion (Q3 2021)[24] | |
| Public finances | |
| US$122.9 billion (July 2024)[25][26] | |
| −1% (of GDP) (2017 est.)[7] | |
| Revenues | 649.6 billion (2017 est.)[7] |
| Expenses | 665.7 billion (2017 est.)[7] |
| Economic aid | donor:ODA, US$7.8 billion (2022)[27] |
All values, unless otherwise stated, are inUS dollars. | |
Canada has ahighly developedmixed economy.[32][33][34] As of 2025, it is theninth-largest in the world, with anominal GDP of approximatelyUS$2.39 trillion.[35] ItsGDP per capita in purchasing power parity (PPP)international dollars is about 27.5% lower than that of the highest-ranking G7 country.[36] Canada is one of the world's largesttrading nations, with a highlyglobalized economy.[37] In 2021, Canadian trade in goods and services reached $2.016 trillion.[38] Canada's exports totalled over $637 billion, while its imported goods were worth over $631 billion, of which approximately $391 billion originated from the United States.[38] In 2018, Canada had atrade deficit in goods of $22 billion and a trade deficit in services of $25 billion.[38] TheToronto Stock Exchange is thetenth-largest stock exchange in the world bymarket capitalization, listing over 1,500 companies with a combined market capitalization of overUS$3 trillion.[39]
Canada has a strongcooperative banking sector, with the world's highest per-capita membership incredit unions.[40] It ranks low in theCorruption Perceptions Index (12th in 2023)[41] and "is widely regarded as among the least corrupt countries of the world".[42] It ranks high in theGlobal Competitiveness Report (11th in 2025)[43] andGlobal Innovation Indexes (14th in 2025).[44] Canada's economy ranks above mostWestern nations onThe Heritage Foundation'sIndex of Economic Freedom[45] and experiences a relatively low level ofincome disparity.[46] The country's average householddisposable income per capita is "well above" theOECD average.[47] Canada ranks low amongst the most developed countries forhousing affordability[48][49] andforeign direct investment.[50][49] Among OECD members, Canada has a highly efficient and strongsocial security system; social expenditure stood atroughly 23.1% of GDP.[4][51][3]
Since the early 20th century, the growth of Canada's manufacturing, mining, and service sectors has transformed the nation from a largely rural economy to an urbanized, industrial one.[52] Like many other developed countries, the Canadian economy is dominated by theservice industry, which employs about three-quarters of the country's workforce.[53] Among developed countries, Canada has an unusually importantprimary sector, of which theforestry andpetroleum industries are the most prominent components.[54] Many towns in northern Canada, where agriculture is difficult, are sustained by nearby mines or sources of timber.[55] Canada spendsaround 1.70% of GDP on advancedresearch and development across various sectors of the economy.[56][57]
Canada's economic integration with the United States has increased significantly sinceWorld War II.[58] TheAutomotive Products Trade Agreement of 1965 opened Canada's borders to trade in the automobile manufacturing industry.[59] In the 1970s, concerns over energy self-sufficiency and foreign ownership in the manufacturing sectors prompted the federal government to enact theNational Energy Program (NEP) and theForeign Investment Review Agency (FIRA).[60] The government abolished the NEP in the 1980s and changed the name of FIRA toInvestment in Canada to encourage foreign investment.[61] TheCanada – United States Free Trade Agreement (FTA) of 1988 eliminated tariffs between the two countries, while theNorth American Free Trade Agreement (NAFTA) expanded the free-trade zone to includeMexico in 1994 (later replaced by theCanada–United States–Mexico Agreement).[62] As of 2023,Canada is a signatory to 15 free trade agreements with 51 countries.[63]
Canada is one of the few developed nations that are net exporters of energy.[54][64]Atlantic Canada possesses vast offshore deposits of natural gas,[65] and Alberta hosts the fourth-largest oil reserves in the world.[66] The vastAthabasca oil sands and other oil reserves give Canada 13 percent of global oil reserves, constituting theworld's third or fourth-largest.[67] Canada is additionally one of the world's largest suppliers ofagricultural products; theCanadian Prairies are one of the most important global producers of wheat,canola, and other grains.[68] Thecountry is a leading exporter of zinc, uranium, gold, nickel,platinoids, aluminum, steel,iron ore,coking coal, lead, copper, molybdenum, cobalt, and cadmium.[69][70] Canada has a sizeable manufacturing sector centred in southern Ontario and Quebec, with automobiles andaeronautics representing particularly important industries.[71] Thecountry's fishing andtourism industries are also a key contributor to the economy.[72]
| Part ofa series on the |
| Economy of Canada |
|---|
 |
Economy by province |
With the exception of a few island nations in theCaribbean, Canada is the only North American country to use theparliamentary system of government. As a result, Canada has developed its own social and political institutions, distinct from most other countries in the world.[73] Though the Canadian economy is closely integrated with theAmerican economy, it has developed unique economic institutions.
The Canadian economic system generally combines elements ofprivate enterprise andpublic enterprise. Many aspects of public enterprise, most notably the development of an extensivewelfare spending system to redress social and economic inequities, were adopted after the end ofWorld War II in 1945.[73]
Approximately 89% of Canada's land isCrown land.[74] Canada has one of the highest levels ofeconomic freedom in the world. Workers can experience protection and labor regulation which is established both federally and throughout the provinces (.[75] Unionization is very common as around 30% of workers can be found in a union, ensuring safe working standards and sufficient pay.[76] Canada also allows for the freedom of immigrant workers through its “Express Entry System”. This is an online system that allows skilled workers who are looking to become permanent residents, an easy way to apply and become official Canadians.[77] Throughout Canada, there is a minimal barrier when it comes to pursuing an entrepreneurship as a Canadian resident. When looking at the Heritage Foundation index of economic freedom, Canada ranks fourteenth out of over one hundred different countries being scored. Canada closely resembles the U.S. in its market-oriented economic system and pattern of production.[78] As of 2019, Canada has 56 companies in theForbes Global 2000 list, ranking ninth just behind South Korea and ahead of Saudi Arabia.[79]International trade makes up a large part of the Canadian economy, particularly of its natural resources. In 2009, agriculture, energy, forestry andmining exports accounted for about 58% of Canada's total exports.[80] Machinery, equipment, automotive products and other manufactures accounted for a further 38% of exports in 2009.[80] In 2009, exports accounted for about 30% of Canada's GDP. The United States is by far its largest trading partner, accounting for about 73% of exports and 63% of imports as of 2009.[81] Canada's combined exports and imports ranked 8th among all nations in 2006.[82]
About 4% of Canadians are directly employed in primary resource fields, and they account for 6.2% of GDP.[83] They are still paramount in many parts of the country. Many, if not most, towns in northern Canada, where agriculture is difficult, exist because of a nearby mine or source of timber. Canada is a world leader in the production of many natural resources such asgold,nickel,uranium,diamonds,lead, and in recent years,crude petroleum, which, with the world's second-largest oil reserves, is taking an increasingly prominent position in natural resources extraction. Several of Canada's largest companies are based in natural resource industries, such asEncana,Cameco,Goldcorp, andBarrick Gold. The vast majority of these products are exported, mainly to the United States. There are also many secondary and service industries that are directly linked to primary ones. For instance one of Canada's largest manufacturing industries is thepulp and paper sector, which is directly linked to thelogging business.
The reliance on natural resources has several effects on the Canadian economy and Canadian society. While manufacturing and service industries are easy to standardize, natural resources vary greatly by region. This ensures that differing economic structures developed in each region of Canada, contributing to Canada's strong regionalism. At the same time the vast majority of these resources are exported, integrating Canada closely into the international economy. Howlett and Ramesh argue that the inherent instability of such industries also contributes to greater government intervention in the economy, to reduce the social impact of market changes.[84]
Natural resource industries also raise important questions of sustainability. Despite many decades as a leading producer, there is little risk of depletion. Large discoveries continue to be made, such as the massive nickel find atVoisey's Bay. Moreover, the far north remains largely undeveloped as producers await higher prices or new technologies as many operations in this region are not yet cost effective. In recent decades Canadians have become less willing to accept the environmental destruction associated with exploiting natural resources. High wages and Aboriginal land claims have also curbed expansion. Instead, many Canadian companies have focused their exploration, exploitation and expansion activities overseas where prices are lower and governments more amenable. Canadian companies are increasingly playing important roles in Latin America, Southeast Asia, and Africa.
The depletion of renewable resources has raised concerns in recent years. After decades of escalating overutilization thecod fishery all but collapsed in the 1990s, and the Pacific salmon industry also suffered greatly. Thelogging industry, after many years of activism, has in recent years moved to a more sustainable model, or to other countries.
Productivity measures are key indicators of economic performance and a key source of economic growth and competitiveness. OECD's[notes 1]Compendium of Productivity Indicators,[85] published annually, presents a broad overview of productivity levels and growth in member nations, highlighting key measurement issues. It analyses the role of "productivity as the main driver of economic growth and convergence" and the "contributions of labour, capital and MFP in driving economic growth".[85] According to the definition above "MFP is often interpreted as the contribution to economic growth made by factors such as technical and organisational innovation". Measures of productivity include thegross domestic product (GDP) andtotal factor productivity.
Another productivity measure, used by OECD, is the long-term trend in multifactor productivity (MFP) also known astotal factor productivity (TFP). This indicator assesses an economy's "underlying productive capacity ('potential output'), itself an important measure of the growth possibilities of economies and of inflationary pressures". MFP measures the residual growth that cannot be explained by the rate of change in the services of labour, capital and intermediate outputs, and is often interpreted as the contribution to economic growth made by factors such as technical and organisational innovation.
According to OECD's annual economic survey of Canada in June 2012, Canada has experienced weak growth of multi-factor productivity (MFP) and has been declining further since 2002. One of the ways MFP growth is raised is by boosting innovation and Canada's innovation indicators such as business R&D and patenting rates were poor. Raising MFP growth is "needed to sustain rising living standards, especially as the population ages".[86]
Since 2010, productivity growth has picked up, almost entirely driven by above average multifactor productivity growth.[87] However, productivity on the whole still lags behind the upper half of OECD countries such as the United States.[88] Canada's productivity is now around the median OECD productivity, close to that of Australia. More can be done to increase productivity, such as increasing the productivity of capital through improving the capital stock to output ratio and capital quality. This could be achieved through the liberalization of internal trade barriers, as suggested in the OECD's latest Canadian economic survey.[89]
The mandate of the central bank—theBank of Canada is to conduct monetary policy that "preserves the value of money by keeping inflation low and stable".[90][91]
The Bank of Canada issues its bank rate announcement through its Monetary Policy Report which is released eight times a year.[91] TheBank of Canada, a federal crown corporation, has the responsibility of Canada's monetary system.[92] Under theinflation-targeting monetary policy that has been the cornerstone of Canada's monetary and fiscal policy since the early 1990s, the Bank of Canada sets an inflation target[91][93] The inflation target was set at 2 per cent, which is the midpoint of an inflation range of 1 to 3 per cent. They established a set of inflation-reduction targets to keep inflation "low, stable and predictable" and to foster "confidence in the value of money", contribute to Canada's sustained growth, employment gains and improved standard of living.[91]
In a January 9, 2019 statement on the release of the Monetary Policy Report, Bank of Canada GovernorStephen S. Poloz summarized major events since the October report, such as "negative economic consequences" of theUS-led trade war with China. In response to the ongoing trade war "bond yields have fallen, yield curves have flattened even more and stock markets have repriced significantly" in "global financial markets". In Canada, low oil prices will impact Canada's "macroeconomic outlook". Canada's housing sector is not stabilizing as quickly as anticipated.[94]
During the period thatJohn Crow was Governor of the Bank of Canada—1987 to 1994—there was a worldwiderecession and the bank rate rose to around 14% and unemployment topped 11%.[92] Although since that time inflation-targeting has been adopted by "most advanced-world central banks",[95] in 1991 it was innovative and Canada was an early adopter when the then-Finance MinisterMichael Wilson approved the Bank of Canada's first inflation-targeting in the 1991 federal budget.[95] The inflation target was set at 2 per cent.[91] Inflation is measured by the totalconsumer price index (CPI). In 2011 the Government of Canada and the Bank of Canada extended Canada's inflation-control target to December 31, 2016.[91] The Bank of Canada uses three unconventional instruments to achieve the inflation target: "a conditional statement on the future path of the policy rate",quantitative easing, andcredit easing.[96]
As a result, interest rates and inflation eventually came down along with the value of the Canadian dollar.[92] From 1991 to 2011 the inflation-targeting regime kept "price gains fairly reliable".[95]
Following theGreat Recession, the narrow focus of inflation-targeting as a means of providing stable growth in the Canadian economy was questioned. By 2011, the then-Bank of Canada GovernorMark Carney argued that the central bank's mandate would allow for a more flexible inflation-targeting in specific situations where he would consider taking longer "than the typical six to eight quarters to return inflation to 2 per cent".[95]
On July 15, 2015, theBank of Canada announced that it was lowering its target for the overnight rate by another one-quarter percentage point, to 0.5 per cent[97] "to try to stimulate an economy that appears to have failed to rebound meaningfully from the oil shock woes that dragged it into decline in the first quarter".[98] According to the Bank of Canada announcement, in the first quarter of 2015, the totalConsumer price index (CPI) inflation was about 1 per cent. This reflects "year-over-year price declines for consumer energy products". Core inflation in the first quarter of 2015 was about 2 per cent with an underlying trend in inflation at about 1.5 to 1.7 per cent.[97]
In response to the Bank of Canada's July 15, 2015 rate adjustment, Prime MinisterStephen Harper explained that the economy was "being dragged down by forces beyond Canadian borders such as global oil prices, the European debt crisis, and China's economic slowdown" which has made the global economy "fragile".[99]
TheChinese stock market had lost about US$3 trillion of wealth by July 2015 when panicked investors sold stocks, which created declines in thecommodities markets, which in turn negatively impacted resource-producing countries like Canada.[100]
The Bank's main priority has been to keep inflation at a moderate level.[101] As part of that strategy, interest rates were kept at a low level for almost seven years. Since September 2010, the key interest rate (overnight rate) was 0.5%. In mid 2017, inflation remained below the Bank's 2% target, (at 1.6%)[102] mostly because of reductions in the cost of energy, food and automobiles; as well, the economy was in a continuing spurt with a predicted GDP growth of 2.8 percent by year end.[103][104] Early on July 12, 2017, the bank issued a statement that the benchmark rate would be increased to 0.75%.
Following the COVID-19 pandemic, critics have pointed out that the Bank of Canada's inflation-targeting has had unintended consequences, such as fuelling an increase in home prices and contributing to wealth inequalities by supporting higher equity values.[105]
In 2020, the Canadian economy had the following relative weighting by the industry as a percentage value of GDP:[106]
| Industry | Share of GDP |
|---|---|
| Real estate and rental and leasing | 13.01% |
| Manufacturing | 10.37% |
| Mining, quarrying, and oil and gas extraction | 8.21% |
| Finance and insurance | 7.06% |
| Construction | 7.08% |
| Health care and social assistance | 6.63% |
| Public administration | 6.28% |
| Wholesale trade | 5.78% |
| Retail trade | 5.60% |
| Professional, scientific and technical services | 5.54% |
| Educational services | 5.21% |
| Transportation and warehousing | 4.60% |
| Information and cultural industries | 3.00% |
| Administrative and support, waste management, and remediation services | 2.46% |
| Utilities | 2.21% |
| Accommodation and food services | 2.15% |
| Other services (except public administration) | 1.89% |
| Agriculture, forestry, fishing, and hunting | 1.53% |
| Arts, entertainment and recreation | 0.77% |
| Management of companies and enterprises | 0.62% |
Canada's real estate market is the backbone of the economy, comprising over 13% of the GDP by sector in 2020. In 2021, housing investment accounted for 21% of national wealth.[107] It is difficult to discern the actual contribution of other sectors (such as construction, Investment and financial services, manufacturing, and forestry) to real estate, rental and leasing, as these industries are intrinsically linked in a complex economy. The Bank of Canada has increased its mortgage bond holdings to target 50% of the fixed-rate primary issuances.[108]
The service sector in Canada is vast and multifaceted, employing about three quarters of Canadians and accounting for 70% of GDP.[109] The largest employer is theretail sector, employing almost 12% of Canadians.[110] The retail industry is concentrated mainly in a small number of chain stores clustered together inshopping malls. In recent years, there has been an increase in the number ofbig-box stores, such asWalmart (of the United States),Real Canadian Superstore, andBest Buy (of the United States). This has led to fewer workers in this sector and the migration of retail jobs to the suburbs.
The second-largest portion of the service sector is the business service, and it employs only a slightly smaller percentage of the population.[111] This includesfinancial services,real estate, and communications industries. This portion of the economy has been rapidly growing in recent years. It is largely concentrated in the major urban centres, especiallyToronto,Montreal andVancouver (seeBanking in Canada).
The education and health sectors are two of Canada's largest, but both are primarily under the influence of the government. The health care industry has been quickly growing and is the third-largest in Canada.
Canada has an importanthigh tech industry,[112] and a burgeoning film, television, and entertainment industry creating content for local and international consumption (seeMedia in Canada).[113]Tourism attracts millions of visitors and supports approximately 10% of the national labor force. In recent years, statistics show that Canada has received over 20 million international tourists annually.[114] The summer months are especially popular for travelers both domestically and internationally.[115] Tourism and supporting industries contributed over $100 billion to the Canadian national economy in 2024. The sector supports nearly 1.8 million Canadians working in tourism-related fields.[114]
Thegeneral pattern of development for wealthy nations was a transition from a raw material production-based economy to a manufacturing-based economy and then to a service-based economy. At its World War II peak in 1944, Canada's manufacturing sector accounted for 29% of GDP,[116] declining to 10.37% in 2017.[106] Canada has not suffered as greatly as most other rich, industrialized nations from the pains of the relative decline in the importance of manufacturing since the 1960s.[116] A 2009 study byStatistics Canada also found that, while manufacturing declined as a relative percentage of GDP from 24.3% in the 1960s to 15.6% in 2005, manufacturing volumes between 1961 and 2005 kept pace with the overall growth in the volume index of GDP.[117] Manufacturing in Canada declined significantly during theGreat Recession. As of 2017, manufacturing accounts for 10% of Canada's GDP,[106] a relative decline of more than 5% of GDP since 2005.
Central Canada is home tobranch plants to all the major American and Japanese automobile makers and many parts factories owned by Canadian firms such asMagna International andLinamar Corporation.
Canada was the world's nineteenth-largest steel exporter in 2018. In year-to-date 2019 (through March), further referred to as YTD 2019, Canada exported 1.39 million metric tons of steel, a 22 percent decrease from 1.79 million metric tons in YTD 2018. Based on available data, Canada's exports represented about 1.5 percent of all steel exported globally in 2017. By volume, Canada's 2018 steel exports represented just over one-tenth the volume of the world's largest exporter, China. In value terms, steel represented 1.4 percent of the total goods Canada exported in 2018. The growth in exports in the decade since 2009 has been 29%. The largest producers in 2018 wereArcelorMittal,Essar Steel Algoma, and the first of those alone accounted for roughly half of Canadian steel production through its two subsidiaries. The top two markets for Canada's exports were itsNAFTA partners, and by themselves accounted for 92 percent of exports by volume. Canada sent 83 percent of its steel exports to the United States in YTD 2019. The gap between domestic demand and domestic production increased to −2.4 million metric tons, up from −0.2 million metric tons in YTD 2018. In YTD 2019, exports as a share of production decreased to 41.6 percent from 53 percent in YTD 2018.[118]
In 2017,heavy industry accounted for 10.2% of Canada's greenhouse gas emissions.[119]
Canada is one of the largest producers of metals (as of 2019):
| Metal | World rank | Ref. |
|---|---|---|
| Platinum | 4 | [120] |
| Gold | 5 | [121] |
| Nickel | 5 | [122] |
| Copper | 10 | [123] |
| Iron (ore) | 8 | [124] |
| Titanium | 4 | [125] |
| Potash | 1 | [126] |
| Niobium | 2 | [127] |
| Molybdenum | 7 | [128] |
| Cobalt | 7 | [129] |
| Lithium | 8 | [130] |
| Zinc | 8 | [131] |
In 2019, the country was also the 4th largest world producer ofsulfur;[132] the 13th largest world producer ofgypsum;[133] the 14th worldwide producer ofantimony;[134] the world's 10th largest producer ofgraphite;[135] in addition to being the 6th largest world producer ofsalt.[136] It was the 2nd largest producer in the world ofuranium in 2018.[137]
Canada has access to cheap sources of energy because of its geography. This has enabled the creation of several important industries, such as the largealuminum industries in British Columbia[138] and Quebec.[139] Canada is also one of the world's highest per capita consumers of energy.[140][141]
Theelectricity sector inCanada has played a significant role in the economic and political life of the country since the late 19th century. The sector is organized along provincial and territorial lines. In a majority of provinces, largegovernment-owned integrated public utilities play a leading role in thegeneration,transmission anddistribution of electricity.Ontario andAlberta have createdelectricity markets in the last decade in order to increase investment and competition in this sector of the economy. In 2017, the electricity sector accounted for 10% of total national greenhouse gas emissions.[142] Canada has substantial electricity trade with the neighbouringUnited States amounting to 72 TWh exports and 10 TWh imports in 2017.
Hydroelectricity accounted for 59% of all electric generation in Canada in 2016,[143] making Canada the world's second-largest producer of hydroelectricity after China.[144] Since 1960, large hydroelectric projects, especially inQuebec,British Columbia,Manitoba andNewfoundland and Labrador, have significantly increased the country's generation capacity.
The second-largest single source of power (15% of the total) is nuclear power, with several plants in Ontario generating more than half of that province's electricity and one generator inNew Brunswick. This makes Canada the world's sixth-largest electricity producer generated by nuclear power, producing 95 TWh in 2017.[145]
Fossil fuels provide 19% of Canadian electric power, about half as coal (9% of the total), and the remainder a mix of natural gas and oil. Only five provinces use coal for electricity generation. Alberta, Saskatchewan, and Nova Scotia rely on coal for nearly half of their generation, while other provinces and territories use little or none. Alberta and Saskatchewan also use a substantial amount of natural gas. Remote communities, including all of Nunavut and much of the Northwest Territories, produce most of their electricity from diesel generators at high economic and environmental costs. The federal government has set up initiatives to reduce dependence on diesel-fired electricity.[146]
Non-hydro renewables are a fast-growing portion of the total, at 7% in 2016.[citation needed]
Canada possesses extensive oil and gas resources centered in Alberta, and the Northern Territories but is also present in neighboringBritish Columbia andSaskatchewan. The vastAthabasca oil sands give Canada the world's third-largest reserves of oil after Saudi Arabia and Venezuela, according toUSGS. The oil and gas industry represents 27% of Canada's totalgreenhouse gas emissions, an increase of 84% since 1990, mostly due to the development of the oil sands.[142]
Historically, an important issue in Canadian politics is the interplay between the oil and energy industry inWestern Canada and the industrial heartland of Southern Ontario. Foreign investment in Western oil projects has fueledCanada's rising dollar. This has raised the price of Ontario's manufacturing exports and made them less competitive, a problem similar to thedecline of the manufacturing sector in the Netherlands.[147][148]
TheNational Energy Policy of the early 1980s attempted to make Canada oil-sufficient and to ensure equal supply and price of oil in all parts of Canada, especially for the eastern manufacturing base.[149] This policy proved deeply divisive as it forced Alberta to sell low-priced oil to eastern Canada.[150] The policy was eliminated 5 years after it was first announced amid a collapse of oil prices in 1985. The new Prime MinisterBrian Mulroney had campaigned against the policy in the1984 Canadian federal election. One of the most controversial sections of theCanada–United States Free Trade Agreement of 1988 was a promise that Canada would never charge the United States more for energy than fellow Canadians.[119]
Canada is one of the world's largest suppliers of agricultural products, particularly wheat and other grains.[151] Canada is a major exporter of agricultural products, to the United States and Asia. As with all other developed nations, the proportion of the population and GDP devoted to agriculture fell dramatically over the 20th century. The agriculture and agri-food manufacturing sector created $49.0 billion to Canada's GDP in 2015, accounting for 2.6% of total GDP.[152] This sector also accounts for 8.4% of Canada's Greenhouse gas emissions.[119]
The Canadian agriculture industry receives significant government subsidies and support as with other developed nations.[153] However, Canada has strongly supported reducing market influencing subsidies through theWorld Trade Organization.[citation needed] In 2000, Canada spent approximately CDN$4.6 billion on support for the industry.[citation needed] $2.32 billion was classified under the WTO designation of "green box" license, meaning it did not directly influence the market, such as money for research or disaster relief.[citation needed] All but $848.2 million were subsidies worth less than 5% of the value of the crops they were provided for.[citation needed]
Canada is negotiating bilateral FTAs with the following countries respectively trade blocs:
Canada has been involved in negotiations to create the following regional trade blocks:
Canada and the United States share a common trading relationship. Canada's job market continues to perform well along with the US, reaching a 30-year low in the unemployment rate in December 2006, following 14 consecutive years of employment growth.[157]
The United States is by far Canada's largest trading partner, with more than $1.7 billionCAD in trade per day in 2005.[158] In 2009, 73% of Canada's exports went to the United States, and 63% of Canada's imports were from the United States.[159] Trade with Canada makes up 23% of the United States' exports and 17% of its imports.[160] By comparison, in 2005 this was more than U.S. trade with all countries in the European Union combined,[161] and well over twice U.S. trade with all the countries ofLatin America combined.[162] Just the two-way trade that crosses theAmbassador Bridge betweenMichigan andOntario equals all U.S. exports toJapan. Canada's importance to the United States is not just a border-state phenomenon: Canada is the leading export market for 35 of 50 U.S. states, and is the United States' largest foreign supplier of energy.
Bilateral trade increased by 52% between 1989, when the U.S.–Canada Free Trade Agreement (FTA) went into effect, and 1994, when theNorth American Free Trade Agreement (NAFTA) superseded it.[163] Trade has since increased by 40%. NAFTA continues the FTA's moves toward reducing trade barriers and establishing agreed-upon trade rules. It also resolves some long-standing bilateral irritants and liberalizes rules in several areas, including agriculture, services, energy, financial services, investment, and government procurement. NAFTA forms the largest trading area in the world, embracing the 405 million people of the three North American countries.
The largest component of U.S.–Canada trade is in thecommodity sector.
The U.S. is Canada's largest agricultural export market, taking well over half of all Canadian food exports.[164] Nearly two-thirds of Canada's forest products, includingpulp andpaper, are exported to the United States; 72% of Canada's totalnewsprint production also is exported to the U.S.
At$73.6 billion in 2004, U.S.-Canada trade inenergy is the largest U.S. energy trading relationship, with the overwhelming majority ($66.7 billion) being exports from Canada. The primary components of U.S. energy trade with Canada arepetroleum,natural gas, andelectricity. Canada is the United States' largest oil supplier and the fifth-largest energy producing country in the world. Canada provides about 16% of U.S. oil imports and 14% of total U.S. consumption of natural gas. The United States and Canada's national electricity grids are linked, and both countries sharehydropower facilities on the western borders.
While most of U.S.-Canada trade flows smoothly, there are occasionally bilateral trade disputes, particularly in the agricultural and cultural fields.[citation needed] Usually these issues are resolved through bilateral consultative forums or referral toWorld Trade Organization (WTO) or NAFTA dispute resolution.[citation needed] In May 1999, the U.S. and Canadian governments negotiated an agreement onmagazines that provides increased access for the U.S.publishing industry to the Canadian market. The United States and Canada also have resolved several major issues involvingfisheries. By common agreement, the two countries submitted aGulf of Maine boundary dispute to theInternational Court of Justice in 1981; both accepted the court's October 12, 1984 ruling which demarcated the territorial sea boundary. A current issue between the United States and Canada is the ongoingsoftwood lumber dispute, as the U.S. alleges that Canada unfairly subsidizes its forestry industry.[citation needed]
In 1990, the United States and Canada signed a bilateral Fisheries Enforcement Agreement, which has served to deterillegal fishing activity and reduce the risk of injury during fisheries enforcement incidents. The U.S. and Canada signed aPacific Salmon Agreement in June 1999 that settled differences over implementation of the 1985 Pacific Salmon Treaty for the next decade.[165]
Canada and the United States signed anaviation agreement duringBill Clinton's visit to Canada in February 1995, and air traffic between the two countries has increased dramatically as a result. The two countries also share in operation of theSt. Lawrence Seaway, connecting theGreat Lakes to theAtlantic Ocean.[166]
The U.S. remains Canada's largest foreign investor and the most popular destination for Canadian foreign investments. In 2018, the stock of U.S. direct investment in Canada totaled $406 billion, while the stock of Canadian investment in the U.S. totaled $595 billion, or 46% of the overall CDIA stock for 2018.[167][168] This made Canada the second largest investing country in the U.S. for 2018[169] US investments are primarily directed at Canada'smining andsmelting industries, petroleum, chemicals, the manufacture of machinery and transportation equipment, and finance, while Canadian investment in the United States is concentrated in manufacturing, wholesale trade, real estate, petroleum, finance, insurance and other services.[170]
Canadian government debt, also called Canada's public debt, is the liabilities of the government sector. For 2019 (the fiscal year ending 31 March 2020), total financial liabilities or gross debt was $2.434 trillion for the consolidated Canadian general government (federal, provincial, territorial, and local governments combined). This corresponds to 105.3% as a ratio of GDP (GDP was $2.311 trillion).[171] Of the $2.434 trillion, $1.146 trillion or 47% was federal (central) government liabilities (49.6% as a ratio of GDP). Provincial government liabilities comprise most of the remaining liabilities.[171]
Household debt, the amount of money that all adults in the household owe financial institutions, includesconsumer debt andmortgage loans. In March 2015, the International Monetary Fund reported that Canada's high household debt was one of two vulnerable domestic areas in Canada's economy; the second is itsoverheated housing market.[172]
According to Statistics Canada,total household credit as of July 2019 was CAD$2.2 trillion.[173] According to Philip Cross of theFraser Institute, in May 2015, while the Canadian household debt-to-income ratio is similar to that in the US, however lending standards in Canada are tighter than those in the United States to protect against high-risk borrowers taking out unsustainable debt.[174]
Since 1985, 63,755 deals in- and outbound Canada have been announced,[when?] with an overall value of US$3.7 billion.[175] Almost 50% of the targets of Canadian companies (outbound deals) have a parent company in the US. Inbound deals are 82% percent from the US.
Here is a list of the biggest deals in Canadian history:[175]
| Rank | Date announced | Acquiror name | Acquiror nation | Target name | Target nation | Value (in bil. USD) |
|---|---|---|---|---|---|---|
| 1 | January 26, 2000 | Spin-off | Canada | Nortel Networks Corp | Canada | 59.97 |
| 2 | June 20, 2000 | Vivendi SA | France | Seagram Co Ltd | Canada | 40.43 |
| 3 | December 7, 2007 | Rio Tinto Canada Holdings Inc | Canada | Alcan Inc | Canada | 37.63 |
| 4 | June 9, 2016 | Enbridge Inc | Canada | Spectra Energy Corp | United States | 28.29 |
| 5 | March 12, 2014 | Enbridge Income Fund | Canada | Enbridge Inc-Liquids | Canada | 24.79 |
| 6 | November 5, 2008 | Shareholders | Canada | Cenovus Energy Inc | Canada | 20.26 |
| 7 | July 23, 2012 | CNOOC Canada Holding Ltd | Canada | Nexen Inc | Canada | 19.12 |
| 8 | May 15, 2006 | Xstrata PLC | Switzerland | Falconbridge Ltd | Canada | 17.40 |
| 9 | November 8, 2006 | Cia Vale do Rio Doce SA | Brazil | Inco Ltd | Canada | 17.15 |
| 10 | March 23, 2009 | Suncor Energy Inc | Canada | Petro-Canada | Canada | 15.58 |
| 11 | July 29, 2008 | Teck Cominco Ltd | Canada | Fording Canadian Coal Trust | Canada | 13.60 |
The following table shows the main economic indicators in 1980–2021 (with IMF staff estimates for 2022–2027). Inflation below 5% is in green.[176]
| Year | GDP (in Bil. US$PPP) | GDP per capita (in US$ PPP) | GDP (in Bil. US$nominal) | GDP per capita (in US$ nominal) | GDP growth (real) | Inflation rate (in Percent) | Unemployment (in Percent) | Government debt (in % of GDP) |
|---|---|---|---|---|---|---|---|---|
| 1980 | 288.7 | 11,798.2 | 276.1 | 11,281.4 | 2.2% | 10.2% | 7.5% | 44.6% |
| 1981 | 327.1 | 13,197.5 | 307.2 | 12,396.7 | 3.5% | 12.5% | 7.6% | 46.1% |
| 1982 | 336.2 | 13,404.9 | 314.6 | 12,543.9 |  -3.2% | 10.8% | 11.1% | 51.7% |
| 1983 | 358.5 | 14,149.5 | 341.9 | 13,493.2 | 2.6% | 5.8% | 12.0% | 57.2% |
| 1984 | 393.4 | 15,380.2 | 356.7 | 13,947.4 | 5.9% | 4.3% | 11.4% | 60.2% |
| 1985 | 425.0 | 16,466.0 | 366.2 | 14,185.9 | 4.7% | 4.0% | 10.5% | 65.2% |
| 1986 | 442.9 | 16,990.4 | 379.0 | 14,539.8 | 2.1% | 4.2% | 9.6% | 69.3% |
| 1987 | 472.3 | 17,893.0 | 433.1 | 16,408.1 | 4.1% | 4.4% | 8.8% | 69.8% |
| 1988 | 510.6 | 19,085.3 | 509.4 | 19,041.2 | 4.4% | 4.0% | 7.8% | 69.7% |
| 1989 | 542.9 | 19,947.7 | 567.2 | 20,842.5 | 2.3% | 5.0% | 7.5% | 71.0% |
| 1990 | 564.1 | 20,415.1 | 596.1 | 21,572.1 | 0.2% | 4.8% | 8.2% | 73.7% |
| 1991 | 571.0 | 20,403.3 | 612.5 | 21,885.6 | -2.1% | 5.6% | 10.3% | 81.7% |
| 1992 | 589.3 | 20,805.6 | 594.4 | 20,984.8 | 0.9% | 1.5% | 11.2% | 88.2% |
| 1993 | 619.3 | 21,615.6 | 579.1 | 20,210.5 | 2.7% | 1.9% | 11.4% | 94.7% |
| 1994 | 661.0 | 22,823.8 | 579.9 | 20,024.6 | 4.5% | 0.2% | 10.4% | 97.5% |
| 1995 | 693.0 | 23,682.4 | 605.9 | 20,706.7 | 2.7% | 2.1% | 9.5% | 100.1% |
| 1996 | 717.1 | 24,252.2 | 630.6 | 21,325.7 | 1.6% | 1.6% | 9.6% | 100.2% |
| 1997 | 760.7 | 25,469.8 | 655.0 | 21,930.5 | 4.3% | 1.6% | 9.1% | 95.3% |
| 1998 | 799.3 | 26,532.4 | 634.0 | 21,046.6 | 3.9% | 1.0% | 8.3% | 93.3% |
| 1999 | 852.4 | 28,068.8 | 678.4 | 22,340.6 | 5.2% | 1.7% | 7.6% | 89.0% |
| 2000 | 916.8 | 29,914.7 | 744.6 | 24,296.7 | 5.2% | 2.7% | 6.8% | 80.4% |
| 2001 | 954.2 | 30,810.5 | 739.0 | 23,859.7 | 1.8% | 2.5% | 7.2% | 81.5% |
| 2002 | 998.4 | 31,887.8 | 760.1 | 24,279.2 | 3.0% | 2.3% | 7.7% | 79.6% |
| 2003 | 1,036.4 | 32,794.3 | 895.6 | 28,338.7 | 1.8% | 2.8% | 7.6% | 75.9% |
| 2004 | 1,097.1 | 34,390.0 | 1,026.5 | 32,176.6 | 3.1% | 1.9% | 7.2% | 71.9% |
| 2005 | 1,167.7 | 36,260.7 | 1,173.5 | 36,439.6 | 3.2% | 2.2% | 6.8% | 70.6% |
| 2006 | 1,235.5 | 37,980.7 | 1,319.4 | 40,558.9 | 2.6% | 2.0% | 6.3% | 69.9% |
| 2007 | 1,295.2 | 39,428.2 | 1,468.9 | 44,717.0 | 2.1% | 2.1% | 6.1% | 66.9% |
| 2008 | 1,333.3 | 40,159.1 | 1,552.9 | 46,773.8 | 1.0% | 2.4% | 6.2% | 67.9% |
| 2009 | 1,302.5 | 38,788.0 | 1,376.5 | 40,990.6 | -2.9% | 0.3% | 8.4% | 79.3% |
| 2010 | 1,358.9 | 40,017.6 | 1,617.3 | 47,627.3 | 3.1% | 1.8% | 8.1% | 81.2% |
| 2011 | 1,430.8 | 41,716.4 | 1,793.3 | 52,285.9 | 3.1% | 2.9% | 7.6% | 81.8% |
| 2012 | 1,468.1 | 42,351.1 | 1,828.4 | 52,744.0 | 1.8% | 1.5% | 7.4% | 85.4% |
| 2013 | 1,554.1 | 44,360.4 | 1,846.6 | 52,708.6 | 2.3% | 0.9% | 7.1% | 86.1% |
| 2014 | 1,621.4 | 45,812.0 | 1,805.8 | 51,020.8 | 2.9% | 1.9% | 7.0% | 85.6% |
| 2015 | 1,594.9 | 44,702.5 | 1,556.5 | 43,626.5 | 0.7% | 1.1% | 6.9% | 91.2% |
| 2016 | 1,678.4 | 46,554.1 | 1,528.0 | 42,382.6 | 1.0% | 1.4% | 7.1% | 91.8% |
| 2017 | 1,776.9 | 48,688.1 | 1,649.3 | 45,192.0 | 3.0% | 1.6% | 6.4% | 88.9% |
| 2018 | 1,869.8 | 50,531.6 | 1,725.3 | 46,625.9 | 2.8% | 2.3% | 5.9% |  88.9% |
| 2019 | 1,939.0 | 51,652.6 | 1,742.0 | 46,404.0 | 1.9% | 1.9% | 5.8% | 87.2% |
| 2020 | 1,859.7 | 48,946.8 | 1,645.4 | 43,306.6 | -5.2% | 0.7% | 9.6% | 117.8% |
| 2021 | 2,025.0 | 52,973.0 | 1,988.3 | 52,015.1 | 4.5% | 3.4% | 7.4% | 112.9% |
| 2022 | 2,240.4 | 57,827.5 | 2,200.4 | 56,794.0 | 3.3% | 6.9% | 5.3% | 102.2% |
| 2023 | 2,353.9 | 59,872.2 | 2,326.6 | 59,179.0 | 1.5% | 4.2% | 5.9% | 98.7% |
| 2024 | 2,441.8 | 61,274.7 | 2,420.7 | 60,745.3 | 1.6% | 2.4% | 6.2% | 96.3% |
| 2025 | 2,544.9 | 63,042.6 | 2,531.2 | 62,703.5 | 2.3% | 1.9% | 6.1% | 93.3% |
| 2026 | 2,642.5 | 64,649.4 | 2,630.3 | 64,352.5 | 1.9% | 1.9% | 6.0% | 90.9% |
| 2027 | 2,739.4 | 66,221.6 | 2,728.4 | 65,954.5 | 1.7% | 2.0% | 6.0% | 88.7% |
| Province | Unemployment rate percentage of labour force as of April 2025[177] | Participation Rate | Employment |
|---|---|---|---|
| Alberta | 7.1% | 68.5% | 2,565,800 |
| British Columbia | 6.2% | 65.1% | 2,950,900 |
| Manitoba | 5.3% | 66.4% | 736,000 |
| Newfoundland and Labrador | 9.6% | 58.3% | 248,100 |
| New Brunswick | 6.9% | 59.8% | 400,400 |
| Nova Scotia | 7.2% | 61.0% | 516,400 |
| Ontario | 7.8% | 65.0% | 8,195,200 |
| Prince Edward Island | 6.6% | 65.9% | 94,300 |
| Quebec | 6.0% | 65.3% | 4,645,600 |
| Saskatchewan | 4.3% | 66.8% | 616,000 |
| Canada (national) | 6.9% | 65.3% | 20,969,300 |
Export trade from Canada measured in US dollars. In 2021, Canada exported US$503.4 billion.
That dollar amount reflects a 19.5% gain since 2017 and a 29.1% increase from 2020 to 2021.[178]
| Partner | Value | Fraction |
|---|---|---|
| United States | $380.4 billion | 75.6% |
| China | $23 billion | 4.6% |
| United Kingdom | $12.9 billion | 2.6% |
| Japan | $11.5 billion | 2.3% |
| Mexico | $6.5 billion | 1.3% |
| Germany | $5.5 billion | 1.1% |
| South Korea | $4.5 billion | 0.9% |
| Netherlands | $3.8 billion | 0.8% |
| France | $3.2 billion | 0.6% |
| Belgium | $3.0 billion | 0.6% |
| Hong Kong | $2.8 billion | 0.6% |
| Norway | $2.5 billion | 0.5% |
| Switzerland | $1.6 billion | 0.5% |
| India | $2.35 billion | 0.5% |
| Italy | $2.1 billion | 0.4% |
Import trade in 2017 measured in US dollars.[179]
| Partner | Value | Fraction |
|---|---|---|
| United States | $222.0 billion | 51.3% |
| China | $54.7 billion | 12.7% |
| Mexico | $27.4 billion | 6.3% |
| Germany | $13.8 billion | 3.2% |
| Japan | $13.5 billion | 3.1% |
| United Kingdom | $6.9 billion | 1.6% |
| South Korea | $6.7 billion | 1.5% |
| Italy | $6.3 billion | 1.5% |
| France | $4.8 billion | 1.1% |
| Vietnam | $3.9 billion | 0.9% |
U.S. companies account for the most members of the list, 565, followed by China and Hong Kong, which is home to 263 Global 2000 companies.
This article incorporates text from this source, which is in thepublic domain:"Global Steel Trade Monitor – Steel Exports Report: Canada"(PDF). US Department of Commerce. International Trade Administration. August 2019. Archived fromthe original(PDF) on April 28, 2018. RetrievedOctober 10, 2019.
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