Canada's Economy

A trading nation with diverse industries

A Trading Nation

Canada has always been a trading nation and commerce remains the engine of economic growth. As Canadians, we could not maintain our standard of living without engaging in trade with other nations.

Key Trade Facts:

  • • Free trade with United States (1988)
  • • NAFTA with Mexico (1994) - over 444 million people
  • • Over $1 trillion in merchandise trade (2008)
  • • One of the ten largest economies in the world
  • • Part of G8 group of leading industrialized countries

Relationship with United States:

Each country is the other's largest trading partner. Over three-quarters of Canadian exports go to the USA. We have the biggest bilateral trading relationship in the world with integrated supply chains.

Three Main Types of Industries

Service Industries

More than 75% of working Canadians

  • • Transportation
  • • Education
  • • Health care
  • • Construction
  • • Banking
  • • Communications
  • • Retail services
  • • Tourism
  • • Government

Manufacturing Industries

Make products to sell in Canada and worldwide

  • • Paper
  • • High technology equipment
  • • Aerospace technology
  • • Automobiles
  • • Machinery
  • • Food processing
  • • Clothing
  • • Many other goods

Natural Resources

Important part of history and development

  • • Forestry
  • • Fishing
  • • Agriculture
  • • Mining
  • • Energy (oil, gas, hydro)
  • • Large percentage of exports
Economic Growth and Social Programs

Postwar Canada enjoyed record prosperity. The discovery of oil in Alberta in 1947 began Canada's modern energy industry. In 1951, for the first time, a majority of Canadians could afford adequate food, shelter and clothing.

Social Safety Net:

  • Canada Health Act - ensures common elements and basic standard of coverage
  • Employment Insurance - introduced 1940 (formerly unemployment insurance)
  • Old Age Security - devised as early as 1927
  • Canada and Quebec Pension Plans - established 1965
  • Publicly funded education - provided by provinces and territories

Financial Institutions:

First financial institutions opened in late 18th and early 19th centuries. Montreal Stock Exchange opened in 1832. Bank of Canada created in 1934 to manage money supply and bring financial stability.

Regional Economic Characteristics

Atlantic Canada

  • • Fishing and coastal resources
  • • Offshore oil and gas (NL)
  • • Forestry and mining
  • • Agriculture (especially PEI potatoes)
  • • Tourism

Central Canada

  • • Manufacturing heartland
  • • Financial services (Toronto)
  • • Hydro-electricity (Quebec)
  • • Aerospace and pharmaceuticals
  • • Agriculture and wine (Ontario)

Prairie Provinces

  • • Agriculture ("breadbasket")
  • • Oil and gas (especially Alberta)
  • • Mining (uranium, potash)
  • • Cattle ranching
  • • Hydro-electric power

West Coast & North

  • • Forestry (most valuable in Canada)
  • • Pacific gateway trade
  • • Mining and fishing
  • • Tourism and film industry
  • • Northern: mining, oil, gas
Innovation and Technology

Canadian advances in science and technology are world renowned. Since 1989, the Canadian Space Agency and Canadian astronauts have participated in space exploration, often using the Canadian-designed Canadarm.

Famous Canadian Inventions:

• Telephone (Alexander Graham Bell)
• Snowmobile (Joseph-Armand Bombardier)
• Standard time zones (Sir Sandford Fleming)
• Electric light bulb (Evans & Woodward)
• Radio (Reginald Fessenden)
• Cardiac pacemaker (Dr. John A. Hopps)
• Canadarm (SPAR Aerospace)
• BlackBerry (Lazaridis & Balsillie)
• Insulin (Banting & Best)
Key Economic Facts
G8 Member
One of world's top 10 economies
NAFTA
444+ million people, $1+ trillion trade
USA Trade
75%+ of exports, biggest bilateral relationship
Service Economy
75%+ of workers in service industries
Resources
Large percentage of exports
Economic Timeline
1832: Montreal Stock Exchange
1934: Bank of Canada created
1940: Employment Insurance
1947: Oil discovered in Alberta
1965: Canada/Quebec Pension Plans
1988: Free trade with USA
1994: NAFTA with Mexico
Study Tips
  • • Know the three types of industries
  • • Understand Canada-US trade relationship
  • • Learn about NAFTA and G8
  • • Know major social programs
  • • Remember key Canadian inventions
  • • Understand regional economic differences