Canada’s Economy

Canada is now the ninth largest country in terms of GDP. It is counted among the most influential countries in the world. Canada’s Economy is similar in many aspects to that of the United States of America’s economy. The production patterns and living standards are similar. Canada now has one of the most industrialized and urbanized economies. 

From after World War ll, Canada’s economy has grown substantially and steadily. Its primary industries include manufacturing, mining, and the service industry. Growth in all sectors has made Canada rich in agricultural export as well as industrial goods and services. 

But, Canada stands out from its neighbours as the oil industry has made a major contribution to its GDP. The logging and oil industry is of prime importance to the Canadian economy. Canada is also famous for its automobile manufacturing industry. They have very low labour costs.  The workers in this industry have healthcare and social security, all while maintaining low labour costs making the industry attractive to big automobile forms as well as foreign workers. This is one of the reasons why the American and Japanese automobile companies have set up their manufacturing facilities in Canada. 

The economy of Canada differs from that of the United States in the aspect that the net volume of the United States. goods are imported, the net volume of Canadian goods are exported. Many have called the banking system of Canada more conservative when compared to that of the United States.

Canada’s economy as well as the economy of the United States are quite interlinked. Canada invests a great deal in the United States industries of mining, smelting, petrol industry and Chemical Industry. That makes Canada the largest trading partner, the United States has. 

Canada’s Economic Geography

Being the second-largest country in terms of land area, Canada has an abundance of minerals. It had reserves of nickel, zinc, copper, gold, lead, molybdenum, potash diamonds, silver, timber, coal, petroleum, natural gas and many rare Earth elements. 

Fishing and forestry have been major industries in Canada for a long time. However, nowadays mineral and energy resources are leading income generators. Canada thrives on the second-largest oil reserves in the world and the 21st largest natural gas reserves. 

Due to the distribution of these resources being uneven, there have been variations in the Development of different Canadian territories. Oil and oil-related industries have led to a boom in Western Canada. Service industries as well as manufacturing industries have developed the economy for the population of Central Canada. However, there has been a slight decline in the fishing industries of New Brunswick, the province of Prince Edward Island, Newfoundland and Labrador and the province of Nova Scotia. Newfoundland and Labrador is back on its feet by shifting its focus to oil and natural gas resources in the province.  

Maximum of its natural resources are exported to the United States because many industries are concentrated along the United States-Canada border. The United States. has also made huge investments in the Canadian economy, specifically in the finance industry, mining and smelting industries, petroleum and chemical industries as well as in the manufacturing of machinery parts and transportation equipment. 

Canada has also made investments in the economy of the United States specifically in the manufacturing industry, wholesale trade, real estate industry, petroleum and finance industries as well as the service industry. 

Canada’s Population and Labour Force

Canada had a population of 34.059 million, and a labour force of 18.59 million people in 2010. This labour force is distributed across various industries. Specifically, 2% in the agriculture industry, 13% in the manufacturing industry, 6% in the industry of construction, 76% of the labour force was in the service sector and the remaining 3% was distributed in the rest of the industries of Canada. 

However, surveys show that Canada’s labour force is ageing and the population growth rate is lower than 1%. This is the reason why Canada accepts millions of immigrant skilled workers to cover up for the labour force requirements. 

The  Canadian government has also introduced many programs such as the Express Entry Program and the Provincial Nominee Programs to help those immigrating to Canada become a permanent resident of Canada, gain Canadian permanent resident status and become a Canadian citizen.  Special programs are also available for Canadian immigrants who are international students, foreign workers, temporary residents and skilled workers under the Provincial Nominee Program. Quebec has a different Provincial Program.

Canada’s Industry Sectors

In 2010, agriculture contributed to 2% of the GDP, industrial activities contributed 20% and the service industry made up for about 78% of the Canadian GDP. 

Agricultural products of Canada are in very high demand across the globe. And Canada also plays the role of one of the biggest Agriculture goods suppliers. Lentils, linseeds, mustard seeds, peas are among the goods exported across the world. Canada also leads in the production of barley, blueberries, cranberries, oats, rapeseed, pork, wheat, turkey, raspberries, rye, beef, mushrooms, chick-peas and maize. The agriculture industry of Canada enjoys government subsidies and support. 

Industrial activities play an equally important role in the economy of Canada is not more important. The industrial growth rate measures the annual increase in the manufacturing, mining and construction industries of Canada in percentage. This growth rate has been on a steady and stable increase. 

Canada being an advanced country, it’s economy heavily relies on the service industry. This includes retail, small and big businesses, educational institutions and the healthcare industry. The domestic and global value of this industry has increased due to many technological advancements

The Banking system of Canada is very stable and has seen a steady increase. It has traditional lending practices and its capitalization is strong making the economy the strongest in the world. The finance and banking industry of Canada has seen the fastest growth rate and economists predict that it will only grow further. 

Canadian Dollar Hits the Highest Rate. 

Recently, the Canadian dollar, the Loonie, took the economy by a storm when it reached the highest rate, even beating the United States. dollar by a margin. This proves the strength and stability of the Canadian economy. This was mainly supported by the high employment rates of the country but also influenced by various factors. In light of the event, economists pointed out that Canada’s Economy has a very stable and steady growth rate and it will only grow further. 

A stable economy along with universal healthcare and quality education are the reasons why millions across the globe immigrate to Canada. You can also live in Canada as a temporary foreign resident or a foreign national with a student visa, tourist visa, travel visa, business visa, work visa, investor visa, immigration visa, or spouse visa. Find out the visa requirements, visa services available, types of visas, how to apply, and if you need a visa. 

Apart from citizenship and immigration to Canada, you can also gain permanent residency in Canada through the various programs designed by the Canadian Government. So do not delay any longer. Find out what pathway is best for you from your Immigration consultant according to the Canadian Immigration Law, and grab the chance to visit Canada today!