Canadian Economics2011

Jamie Mulholland

Canada’s Economy

Jamie Mulholland

Capital: Ottawa

Largest City: Toronto

Official Languages: English and French

Established in July 1, 1867

Total area: 9,984,670 km2, water 891,162 km2

Population: 34,404,000 (2011)

GDP (PPP): $1.330 trillion (2010)

GDP (nominal): $1.556 trillion (2010)

Canada’s Economic System

Canada has a Mixed economic system– Similar to a Market economy (free enterprise)– some government regulation among

industries

Member of OECD, NAFTA, WTO, G8

Canada’s Natural Resources

Iron ore, nickel, zinc, copper, gold, lead, molybdenum, diamonds, silver, potash, coal, petroleum, natural gas, hydroelectric power, wildlife, fish, timber

Early Industries

Fur trade – Beaver and Seal pelts

Atlantic Fisheries (Newfoundland)

Forestry

Gold mining

Canals and railway were used for transportation.

Klondike Gold Rush

The 1980’s was marked by a frenzied influx of immigration for gold prospecting.

Logging Industry

Canada has large forests (4,020,000 km2) and produces more wood and paper products than any other country.

90% is publicly owned and 50% of the total forest area is allocated for harvesting.

Canada’s Land Use

What percentage of the land is arable?– 5% (only in Southern Canada; Northern Canada’s

terrain is permafrost!)

What are the major agricultural products?– Wheat, barley, oilseed, tobacco, fruits, vegetables,

dairy products, forest products, fish, cannabis

Canada’s Industries

What’s being produced in the factories?– Transportation equipment, chemicals,

processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum, natural gas

Labour Force: 18.59 million (2010)– Services 76%, manufacturing 13%,

construction 6%, agriculture 2%, other 3%

Canada’s ExportsChief exports:– motor vehicles and parts, industrial

machinery, aircraft, telecommunications equipment, electronics, chemicals, plastics, fertilizers, wood pulp, timber, crude petroleum, natural gas, electricity, aluminum.

Exports total: $406.8 billion (2010)Top exporting partners (2009):

– U.S. 75.02%, UK 3.37%, China 3.09%

Canada’s ImportsChief imports:– Machinery & equipment, motor vehicles &

parts, crude oil, chemicals, electricity consumer goods

Imports total (2010): $406.4 billion

Top importing partners (2009): – U.S. 51.1%, China 10.88%, México 4.56%

Canada’s Literacy Rate

What percentage of people over the age of 15 can read and write?– 99% (2009)

How long are students required to stay in school?– 17 years

Canada’s Unemployment Rate

What percentage of people do not have jobs?– 7.6% (2010)

What percentage of people live in poverty?– Statistics Canada low income cut-off

• 10.8% relative (2005)

– Fraser institute Basic needs poverty measure • 4.9% (2004)

Canada’s GDP

$1.600 trillion (2010)

GDP Per Capita--$39,599 (2009)

GDP by sector:– services (71.3%)– industry (26.4%)– agriculture (2.3%) -2009

North American Free Trade Agreement

Signed by the US, Canada, & Mexico in the mid-1990sEliminated trade barriers between the 3 countriesFree Trade between the 3 countriesHow has it affected Canada’s economy?– It eliminated trade barriers with US & Mexico, and

allows them to trade more freely at a better cost

Canada’s Economic ProblemsUnemployment & poverty

Over depletion of natural resources

Acid rain from factories near Great Lakes region

Improving public services (which forces the country to raise taxes)

Aging population and immigration

Solutions?

Eco-tourism

A shift from exporting of raw materials (chemicals, minerals, lumber) to value added products (processed chemicals and food products)

Legalization of marijuana – Canada’s largest agricultural product