Canada

Capital: Ottawa

Local time:
It is %T:%M %A in Quebec, Montreal, Toronto, Ottawa
It is %T:%M %A in Edmonton, Calgary
It is %T:%M %A in Whitehorse, Vancouver

Exchange rate on :

GDP growth rate: 2.5% in 2013

FDI stock: 561 111 million USD in 2010

Country risk: See the country risk analysis from Canada provided by Ducroire.

Economic trends

After contracting due to the global recession, Canada's GDP rebounded with growth estimated at over 3% in 2010 due to the economic stimulus measures, the recovery of foreign trade and the renewed confidence of households. In 2011, the rate of growth was uneven and generally weaker. Due to weak U.S. demand (on which Canada depends for its exports), high degree of household debt, the possible drop in property prices, and worries about the debt crisis in the eurozone, growth is expected to slow down in 2012.

As the only G7 country to have recovered its growth rate and jobs lost during the recession, Canada has a sound economic foundation. The government therefore plans to phase out tax incentives, setting itself the goal of balancing the 2015-16 budget by reducing spending while lowering taxes to stimulate growth and employment. Measures have been taken to monitor the rise of mortgage loans. The main danger is the possible worsening of the crisis in the eurozone and its impact on global financial markets. In the medium term, Canada will focus on improving the business environment and increasing productivity, in order to counter the growing trend of decreasing competitiveness. Another concern is population again, which has been increasing the costs of medical care.

Canada is a rich country with a very good living standard. Its unemployment rate, after having reached more than 8% in 2009 following the global recession, has again been decreasing, although it remains above its pre-crisis level.

Main branches of industry

Accounting for almost two thirds of the GDP, the service sector dominates the Canadian economy. Its most dynamic areas are: telecommunications, tourism, Internet (almost 65% of Canadian households regularly use the Internet) and the aeronautical industry.

The agricultural sector represents a little more than 2% of the GDP and employs less than 2% of the population. Canada is one of the largest exporters of agricultural products in the world, wheat in particular. It produces 10% of the world's GMO harvests. Fishing is an important sector. Canada is one of the main producers of minerals, namely nickel, zinc and uranium. The country also has large reserves of oil and natural gas.

Canada has 6 strong sectors of primary industry: renewable energies (mainly wind), forestry sector, hydrogen and fuel cells, mines, metals and minerals, fishing, oil and gas. The manufacturing sector represents approximately a third of the GDP.

International trade

Canada is a country open to the outside and foreign trade represents more than 60 % of its GDP.

The United States receives about 80% of Canadian exports. Canada is the United States' biggest foreign energy supplier, including the supply of oil, gas, uranium and electric power. Its other main trading partners are the European Union, Japan, China and Mexico.

As an effect of the global economic crisis, the Canadian trade balance has turned negative, as exports were falling quickly and imports began to recover much less rapidly. After having registered a trade surplus in September 2011, by the end of the year Canada's trade balance again worsened, since exports slowed down. The negative trade balance will probably remain, due to a weak economic recovery in the US and the difficulties experienced by the eurozone countries.