Canada Economy

Canada Economy  | read this item

Canada’s economy is developed and based on the enhanced services sector, rich natural resources and good management.

The IMF reports that the country’s economy takes the eighth place in the list of world’s largest economies. As far as its GDP is concerned, it amounted to $1.274 trillion in 2007. Its growth was estimated at 2,7%. Canada is one of the G8 members and many other international organizations, including OECD.

Just like many other developed countries, Canada has made a transition from agriculture to services. Nowadays, services sector plays the major role in the country’s economy and provides around 67,9% of GDP. The industry includes a lot of branches, such as the retail sector, financial services, real estate, education, health, high-tech, entertainment and tourism. All of them are growing fast, but especially it refers to retail and health. 75% out of the total 17.9 millions of working population of the country are employed in the service sector.

One of the most important features of Canada’s successful economy is the free trade agreement with the USA. The document was concluded in 1989. In 1994 the country signed the NAFTA treaty. As a result of those treaties and agreements, Canada got connected with such countries as Mexico, Israel, Chile and Costa Rica. In January 2008, Canada has become a member of Canadian-European free trade association. This also influenced the development of the country’s economy.

In terms of the territory size, Canada goes second, after Russia. The country is rich in natural resources. There are two main industries and exports: oil and lumber, pulp and paper. As the USGS reports, Canada takes the second place in the world regarding its natural resources. First of all, the country possesses large reserves of oil and gas in such regions as Alberta, British Columbia, Saskatchewan and the Athabasca Tar Sands. Canada is considered to be one of the world’s leading producers of nickel, gold, diamonds, uranium and lead. It is also one of the main exporters of soft commodities, such as grains and wheat.

Though manufacturing is not regarded as a leading sector of the country’s economy, it is still very important and produces a lot of cars and light aircraft. The production is mainly carried out in the central part of Canada.

One of the main features that influenced the economy is wise fiscal management. Good and reasonable management has ensured a balanced budget for the last years.

Topics: british columbia, Canada Economy, developed countries, economy, free trade agreement, other developed countries, population