Economy of Canada

Canada is one of the wealthiest countries in the world; it is a member of the WTO, the OECD, the IMF, the World Bank and the G8. In terms of gross domestic product is Canada with 1432.140 billion U.S. dollars on the 11th Place. In purchasing power parity, it is with 1265.838 billion international dollars at number 13, the gross domestic product per capita of 43,485 U.S. dollars to rank 14 (as of 2007). In the Human Development Index of the UNDP, which also takes into account non-economic factors, Canada is in fourth place.

Although Canada is considered a social market economy, but the economic room for maneuver is very large; in the " Index of Economic Freedom ," the Heritage Foundation Canada is rated higher than most Western European countries and slightly lower than the U.S.. As in other developed countries, the Canadian economy is dominated by the service sector. Above average but the proportion of the primary sector, which is due to the abundance of natural resources and their exploitation.

Foreign trade accounts for a large part of the Canadian economy. Exports reached 36.7 % and imports 32.8 % of GDP. By far the most important trading partner, the U.S. is 76.4 % of exports and 65.0 % of imports in 2007. Occupied Canada after the EU, the USA, Japan and China ranked fifth in the world foreign trade statistics. Foreign trade is largely free, foreign investment only in a few key areas are limited to minority interests.

Economic sectors

Raw materials

Due to the mineral wealth of the mining plays an important economic role. Canada is the world's largest producer of zinc, uranium, potassium, cadmium, sulfur and nickel. Every third the country ranked in the degradation of aluminum, titanium, cobalt, molybdenum, gold and lead. Around 80 % of exploited raw materials are exported, mainly to the United States.

The mineral resources are distributed very differently. For example, the entire Canadian iron ore in Newfoundland and Labrador and in northwestern Quebec is degraded. The gold and copper mining is particularly common in northern Ontario, the coal mining industry in Alberta, British Columbia and Nova Scotia. The mining of diamonds is concentrated in the Northwest Territories, the uranium mining in Saskatchewan. Quebec provides a fifth of the world's supply of asbestos, in Labrador is the world's largest nickel deposits.

Thanks to the large areas of forest and the associated, seemingly inexhaustible raw material potential of forestry has an important position. This is particularly common in British Columbia, Ontario and Quebec. Canada is the world's largest producer of wood pulp, cellulose, paper and cardboard. Especially in the eastern provinces of maple syrup is made, which is a typical component of the North American kitchen.

The relatively high dependence on natural resources affects in different ways on the economy and society of Canada. In the sparsely populated areas of the north, where agriculture is difficult to operate or is impossible, the existence of numerous settlements depends directly on mineral or forest resources. The uneven distribution of natural resources causes they contribute to forming different economic structures, resulting in a strong regionalism. At the same time, the country will be tightly integrated as a whole by exporting to the world economy.

Energy

Canada is one of the few developed nations that is a net exporter of energy. Most important are the extensive reserves of petroleum and natural gas in Alberta (partly also in the neighboring provinces of British Columbia and Saskatchewan ). The Athabasca oil sands in northern Alberta Canada has the world's second largest reserves of oil after Saudi Arabia. Since the beginning of the 21st century, the Atlantic provinces, particularly Newfoundland and Labrador, to a second center of oil and gas production ( offshore drilling ) develop. The oil is transported in pipelines, refineries are located predominantly in Edmonton, Montreal and Sarnia. In several provinces, particularly Quebec, British Columbia and Ontario, but also in Alberta and Manitoba, is related to the hydropower a renewable and relatively environmentally friendly source of energy in large quantities. In Ontario, there are 16 of the 18 active nuclear reactors in the country.

A stress field of the Canadian domestic policy is the fact that the largest offering can be found at energy sources in more sparsely populated west, while the greatest demand in southern Ontario and Quebec, where few natural energy resources are available. The transport of oil from Alberta to the U.S. is cheaper than in eastern Canada, which is why these provinces have to import large quantities of oil. To compensate for this discrepancy, trying to force the federal government to the National Energy Program Alberta oil to sell on favorable terms after Eastern Canada. The program backfired when oil prices collapsed mid-1980s.

Agriculture and Fisheries

→ See also: Viticulture in Canada, seal hunt in Canada, whaling

Although only 8% of state land is used for agriculture, Canada is one of the world's major exporters of agricultural products. The Canadian agriculture can be divided into five main groups: Primarily intended for export are cereals and oilseeds (34 % of agricultural income), and meat products and live cattle ( 27%). For the home market are determined dairy industry (12% ), fruit and vegetables from the Gardening ( 9%) and poultry and eggs ( 8%). The farms are mechanized and mechanized to a great extent. While the farms reach an area of ​​about 300 ha in the prairies, on average, comprise the farms in eastern Canada an average of less than 100 ha

Unlike many other countries, the Canadian farmers have to compete on the international market, largely without government subsidies. Only products that are intended for the home market, enjoy protection by import tariffs. What is striking is the regional distribution: While the export-oriented branches of agriculture are concentrated in the Prairie provinces, the provinces in the east is mainly produced for the domestic market. One exception is the concentrated in Ontario viticulture ( so Canada is the world's largest exporter of ice wine ).

The rich fishing grounds of the Pacific and the Atlantic form the basis of the Canadian fishing industry that exports among other things, salmon, cod, American lobster and herring. A leader is here doing the province of Nova Scotia with 30 % of income, followed by British Columbia and Newfoundland ( 20% each ). The Newfoundland is one of the richest fishing grounds in the world. While there are a not insignificant inland fisheries, but it is to be regarded primarily as a sport fishing. Also the fur trapping and fur farming are still important, however, declined sharply.

Industry

On the basis of its wealth in natural resources Canada has built a diversified industry, whose focus in the automotive and aircraft industry, the metal industry, in the food processing as well as in the wood and paper processing are. Also play a significant role in the chemical and electrical industry, increasingly, the high-tech sector. Historically, however, the industry was in Canada compared to other sectors of the economy always subordinated, though by no means insignificant. For this reason, the country was in the 1970s and 1980s, much less affected by the de-industrialization than other industrialized nations.

Around three quarters of all industrial enterprises are located in the provinces of Ontario and Quebec. There, especially the final production is concentrated, while in the other provinces dominated the intermediate processing of raw materials. Play an important role branch plants of U.S. and Japanese automotive industry and suppliers. Attractive for these companies is the high level of education at the same time somewhat lower wage level than in the United States. Independent Canadian industry groups are in the minority.

Services

The service sector is diverse. He employs about three quarters of the working population and accounts for about two-thirds of the gross domestic product. The largest portion takes on the wholesale and retail trade, followed by the finance, including banking, insurance and real estate are. This part of the economy is concentrated in large urban centers such as Toronto, Calgary and Montreal. Seven of the ten largest Canadian companies are active in the banking and insurance sector.

Also of great importance are the education and health care, both of which are almost entirely controlled by the State. An increasingly important role assume the information technology and the entertainment industry. Tourism is the fifth largest industry in the country, with the vast majority of tourists is from the U.S..

Currency

The national currency of Canada is the Canadian dollar, which is issued by the Bank of Canada. A dollar is divided into 100 cents. The table below shows the average exchange rates during the last years. It is striking, especially the striking increase in value against the U.S. dollar.

Regional differences

The Canadian provinces and territories recorded consistently high GDP figures, but there are big differences among these. The most populous province of Ontario alone would - compared to other countries - ranked 25 of the largest economies in the world. The GDP values ​​of the territories are comparable to those of small island states, but also smaller than those of many Canadian cities.

There are also large differences in GDP per capita. Mainly because of the oil industry in Alberta, this value is more than twice as high as in Prince Edward Iceland. To compensate for this imbalance, the federal government collects compensation from richer provinces (notably Ontario and Alberta) and distributes them to the poor. In absolute terms, Quebec has always been the largest recipient of compensation. In the mid- range British Columbia and Saskatchewan, tend to move between paying and receiving are. Newfoundland and Labrador, traditionally a little wealthy province, witnessed since the beginning of the 21st century due to several offshore oil production projects a much higher GDP growth than the national average and is therefore no longer receive compensation from the fiscal year 2008. The GDP of the territories is based on an above-average share of compensation due to the much higher cost of living in the arctic climate of the North.

Comparison of the provinces and territories ( All figures in Canadian dollars)

Free Trade Agreement

Currently, the following free trade agreements are in force:

  • North American Free Trade Agreement ( United States and Mexico, since 1994)
  • Israel (since 1997)
  • Chile (since 1997)
  • Costa Rica ( since 2002)
  • EFTA ( Iceland, Norway, Switzerland and Liechtenstein, since 2008)
  • Andean Community (Peru (since 2009), Colombia ( since 2011 ) )
  • Jordan (since 2012)
  • Panama (since 2013)

Ongoing negotiations on free trade agreements:

United Nations Development Programme Aluminium Giant-Mine Royal Bank of Canada Free trade area Economy of the Dominican Republic Economy of Cuba
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