Financial and Economical State of Canada

Canada is the second largest country in the world, which ranks 16th in the world in terms of per capita income, and 17th in terms of GDP. It is included in the 7 best countries to live in. The Canadian Federation is a member of the British Commonwealth and possesses impressive reserves of oil, aluminum, copper, iron, nickel, gold, uranium, and zinc. Canada’s economy is based on mining, mechanical engineering, timber cutting, and tourism.

Table 1: Main branches of the Canadian economy

Branch	Pecularities	GDP rate,%
Mining	oil, aluminum, copper, iron, nickel, gold, uranium, and zinc	29%
Timber cutting	40% of forests cover the country	18%
Mechanical engineering	Car factories of the US, European countries, and Japan; manufacturing of airplanes and underground trains	16%
Fishing industry	Catching sea-fish, crayfish, lobsters, shrimps, and carps.	10%
Tourism	Excursion, mountain skiing, ecological, hiking, recreational tourism	8%
Agriculture	Cultivation of rapes, seeds, ginseng	7%

Hydropower, nuclear and thermal power plants operate in the country. Bay of Fundy is known in the world for its record high tides – up to 18 m. It is planned to build several tidal power plants in the water area of the bay, operating on an inexhaustible source of energy.

In 2018, inflation in Canada was 3%. This is the highest level in the last 7 years. Average salary in 2019 is CAD 4,520 per month.

GDP of Canada – statistics, dynamics, forecasts

The country’s annual GDP growth is 2.2-4%. Its dynamics is determined by the volume of extraction of minerals and timber, engineering products. Under the influence of the unfavorable dynamics of oil prices in 2015, the country’s GDP decreased by 13.5%. The stable functioning of these branches ensures low growth rates of the indicator.

In 2018, the value of GDP per capita amounted to $ 46,261. Over the year, the indicator increased by 2.29%.

In 2019-2021, the country’s Ministry of Finance predicts GDP growth of 2% in 2019, 2.5% in 2020. As for the national income per capita, in 2019 it will increase by 1.9%, in 2020 – by 2.2%.

What does the Canadian economy produce?

Canada is rich in minerals, but the country’s economy is based not only on their extraction.

Mining industry

The territory of the state contains 13.28% of the world’s oil reserves. It is one of the largest hydrocarbon exporters in the world. Canada’s reserves of ferrous and non-ferrous metals are among the largest in the world.

Table 2: The largest deposits of minerals

№	Deposit	Minerals
1	Ontario	Nickel, aluminium, cooper, silver, titanium, and zinc
2	Quebec	Iron, zinc, asbestos
3	Newfoundland, Labrador	Iron
4	British Columbia	Cooper
5	New Brunswick	Zinc

Timber cutting

40% of the state’s territory is covered with forests: coniferae (65%) and broadleaved (35%). The USA is the main buyer of timber. Canadian enterprises produce 36% of the world’s paper and 78% of maple syrup.

Mechanical engineering

The world famous engineering corporation Bombardier operates on the territory of Canada, which produces regional passenger and business aircrafts. In addition, the company produces locomotives, subway trains, motor vehicles (snowmobiles, ATVs, aquabikes, etc.), train traffic safety equipment. Thanks to this branch, the country ranks 1st in the world aircraft industry ranking. In the provinces of Quebec and Ontario, there are car factories that produce American, European and Japanese cars.

Fishing

Fishing is the strangest industry in Canada. The country’s shelves catch 24.8% of the world’s fish and seafood.

Table 3: Fishing deposits

№	Region	Products
1	Newfoundland, Labrador	Rock fish, cracks
2	Atlantic provinces	Cracks, lobsters, shrimps, carps
3	British Columbia	Salmon

Tourism

Canada is the 5th most visited country in the world. Cognitive, hiking, skiing, beach, ecological, recreational and event tourism are developing here. Thousands of tourists are attracted by diving and rafting. Canoeing and kayaking are available, as well.

Agriculture

7% of the country’s territory is occupied by agricultural land. Wheat, lentils, rapeseed, ginseng and potatoes are grown here. Canadian farmers cultivate lettuce, cucumbers, corn, apples, strawberries and tobacco.

Cattle farms are breeding the Canadian Bos taurus cows. The Province of British Columbia is engaged in the production of chicken and eggs. Quebec produces milk, whey, sour cream and curd cheese.

Exports and imports of Canada

The country’s foreign trade turnover in 2018 amounted to 2.7 billion euros, which is 14.4% higher than in 2017.

Table 4: Export and import

Export	Import
Agricultural products Fishing products Energy resources Forests Industrial resources Mechanical engeneering Cars Repair parts	Metals Clothes Plastics Shoes Grocery Washing products Cars and equipment Fruits and vegetables
2018: $511 bln.	2018: $550 bln.

All three sectors are fully developed in the Canadian economy:

primary – creating raw materials (mining and agriculture);
secondary – processing raw materials (industrial production and energy);
tertiary – creating services (tourism, transport, communications, finance).

The country’s balance of payments is negative: the state exported products from the country for only $511 billion in 2018, while imported products worth $550 billion.

Key foreign trade partners are the USA, Japan, Great Britain, EU countries, Mexico.

The state’s external debt in 2018 was $843 billion, which is 88% of the country’s GDP. In 2020-2025 experts predict its reduction by 5-7% due to the onset of the term for regular payments.