Economy Overview
Canada 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. Canada has a large oil and natural gas sector with the majority of crude oil production derived from oil sands in the western provinces, especially Alberta. Canada now ranks third in the world in proved oil reserves behind Venezuela and Saudi Arabia and is the world’s seventh-largest oil producer.; TThe 1989 Canada-US Free Trade Agreement and the 1994 North American Free Trade Agreement (which includes Mexico) dramatically increased trade and economic integration between the US and Canada. Canada and the US enjoy the world’s most comprehensive bilateral trade and investment relationship, with goods and services trade totaling more than $680 billion in 2017, and two-way investment stocks of more than $800 billion. Over three-fourths of Canada’s merchandise exports are destined for the US each year. Canada is the largest foreign supplier of energy to the US, including oil, natural gas, and electric power, and a top source of US uranium imports.; Given its abundant natural resources, highly skilled labor force, and modern capital stock, Canada enjoyed solid economic growth from 1993 through 2007. The global economic crisis of 2007-08 moved the Canadian economy into sharp recession by late 2008, and Ottawa posted its first fiscal deficit in 2009 after 12 years of surplus. Canada's major banks emerged from the financial crisis of 2008-09 among the strongest in the world, owing to the financial sector's tradition of conservative lending practices and strong capitalization. Canada’s economy posted strong growth in 2017 at 3%, but most analysts are projecting Canada’s economic growth will drop back closer to 2% in 2018.;
Agriculture Products
wheat, barley, oilseed, tobacco, fruits, vegetables; dairy products; fish; forest products
Industries
transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum, natural gas
Industrial Production Growth Rate
4.9% (2017 est.); country comparison to the world: 60;
Labor Force
19.52 million (2017 est.); country comparison to the world: 31;
Unemployment Rate
6.3% (2017 est.); 7% (2016 est.); country comparison to the world: 94;
Population Below Poverty Line
9.4% (2008 est.); note: this figure is the Low Income Cut-Off, a calculation that results in higher figures than found in many comparable economies; Canada does not have an official poverty line;
Household Income or Consumption by Percentage Share
Lowest 10%: 24.8% (2000)
Highest 10%: 24.8% (2000)
Distribution of Family Income Gini Index
32.1 (2005); 31.5 (1994); country comparison to the world: 119;
Budget
Revenues: 649.6 billion (2017 est.)
Expenditures: 665.7 billion (2017 est.)
Public Debt
89.7% of GDP (2017 est.); 91.1% of GDP (2016 est.); note: figures are for gross general government debt, as opposed to net federal debt; gross general government debt includes both intragovernmental debt and the debt of public entities at the sub-national level; country comparison to the world: 25;
Central Bank Discount Rate
1% (31 December 2010); 0.25% (31 December 2009); country comparison to the world: 133;
Commercial Bank Prime Lending Rate
Stock of Narrow Money
$748.9 billion (31 December 2017 est.); $637.6 billion (31 December 2016 est.); country comparison to the world: 9;
Stock of Broad Money
$748.9 billion (31 December 2017 est.); $637.6 billion (31 December 2016 est.); country comparison to the world: 9;
Stock of Domestic Credit
$3.219 trillion (31 December 2017 est.); $2.802 trillion (31 December 2016 est.); country comparison to the world: 8;
Market Value of Publicly Traded Shares
$1.593 trillion (31 December 2015 est.); $2.095 trillion (31 December 2014 est.); $2.114 trillion (31 December 2013 est.); country comparison to the world: 7;
Reserves of Foreign Exchange and Gold
$86.68 billion (31 December 2017 est.); $82.72 billion (31 December 2016 est.); country comparison to the world: 28;
Debt External
$1.608 trillion (31 March 2016 est.); $1.55 trillion (31 March 2015 est.); country comparison to the world: 13;
Stock of Direct Foreign Investment at Home
$1.039 trillion (31 December 2017 est.); $1.004 trillion (31 December 2016 est.); country comparison to the world: 10;
Stock of Direct Foreign Investment Abroad
$1.371 trillion (31 December 2017 est.); $1.277 trillion (31 December 2016 est.); country comparison to the world: 11;
Exchange Rates
Canadian dollars (CAD) per US dollar -; 1.308 (2017 est.); 1.3256 (2016 est.); 1.3256 (2015 est.); 1.2788 (2014 est.); 1.0298 (2013 est.);
