Canada/Economy

Economy - overview: As an affluent, high-tech industrial society, Canada today closely resembles the US in its market-oriented economic system, pattern of production, and high living standards. Since World War II, the impressive growth of the manufacturing, mining, and service sectors has transformed the nation from a largely rural economy into one primarily industrial and urban. Real rates of growth have averaged nearly 3.0% since 1993. Unemployment is falling and government budget surpluses are being partially devoted to reducing the large public sector debt. The 1989 US-Canada Free Trade Agreement (FTA) and 1994 North American Free Trade Agreement (NAFTA) (which included Mexico) have touched off a dramatic increase in trade and economic integration with the US. With its great natural resources, skilled labor force, and modern capital plant Canada enjoys solid economic prospects. Two shadows loom, the first being the continuing constitutional impasse between English- and French-speaking areas, which has been raising the possibility of a split in the federation. Another long-term concern is the flow south to the US of professional persons lured by higher pay, lower taxes, and the immense high-tech infrastructure.

GDP: purchasing power parity - $722.3 billion (1999 est.)

GDP - real growth rate: 3.6% (1999 est.)

GDP - per capita: purchasing power parity - $23,300 (1999 est.)

GDP - composition by sector:

• agriculture: 3%
• industry: 31%
• services: 66% (1998)

Population below poverty line: NA%

Household income or consumption by percentage share:

• lowest 10%: 2.8%
• highest 10%: 23.8% (1994)

Inflation rate (consumer prices): 1.7% (1999)

Labor force: 15.9 million (1999)

Labor force - by occupation: services 75%, manufacturing 16%, construction 5%, agriculture 3%, other 1% (1997)

Unemployment rate: 7.6% (1999)

Budget:

• revenues: $121.8 billion
• expenditures: $115.1 billion, including capital expenditures of $1.7 billion (1998)

Industries: processed and unprocessed minerals, food products, wood and paper products, transportation equipment, chemicals, fish products, petroleum and natural gas

Industrial production growth rate: 4.3% (1999 est.)

Electricity - production: 550.852 billion kWh (1998)

Electricity - production by source:

• fossil fuel: 27.18%
• hydro: 59.77%
• nuclear: 12.25%
• other: 0.8% (1998)

Electricity - consumption: 484.515 billion kWh (1998)

Electricity - exports: 39.502 billion kWh (1998)

Electricity - imports: 11.725 billion kWh (1998)

Agriculture - products: wheat, barley, oilseed, tobacco, fruits, vegetables; dairy products; forest products; fish

Exports: $277 billion (f.o.b., 1999 est.)

Exports - commodities: motor vehicles and parts, newsprint, wood pulp, timber, crude petroleum, machinery, natural gas, aluminum, telecommunications equipment, electricity

Exports - partners: US 84%, Japan 3%, UK, Germany, South Korea, Netherlands, China (1998)

Imports: $259.3 billion (f.o.b., 1999 est.)

Imports - commodities: machinery and equipment, crude oil, chemicals, motor vehicles and parts, durable consumer goods, electricity

Imports - partners: US 77%, Japan 3%, UK, Germany, France, Mexico, Taiwan, South Korea (1998)

Debt - external: $253 billion (1996)

Economic aid - donor: ODA, $2.1 billion (1997)

Currency: 1 Canadian dollar (Can$) = 100 cents

Exchange rates: Canadian dollars (Can$) per US$1 - 1.4489 (January 2000), 1.4857 (1999), 1.4835 (1998), 1.3846 (1997), 1.3635 (1996), 1.3724 (1995)

Fiscal year: 1 April - 31 March