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 declining due to global recession, Canada's GDP has rebounded with growth estimated at over 3% in 2010 due to the stimulus package, the recovery of foreign trade and the newfound confidence of Canadian households. The growth rate should slow down in 2011, reflecting among others the end of the stimulus measures and a lower household consumption, which are facing increased levels of debt.

After the beginnings of a recovery, the emphasis is now on structural reforms. The government's priority is to consolidate its budgetary position, which in some provinces the crisis has worsened to alarming proportions. Plans to cut spending have been developed. Health reform also figures at the forefront, as well as a reform of the system of unemployment benefits.

In fact, even though Canada is a rich country with a very good living standard, it now has to deal with a worrying growth of its unemployment rate, which was estimated at 8 % in 2010. 

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 outside and trade represents more than 60 % of its GDP.

The United States takes 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. Exports have been stagnating in 2010, while imports have risen, thus creating a trade deficit.