The Economy of Canada

Canada is an affluent and highly technological society that resembles the United States in many ways, including the pattern of production, the market orientation of the economic system, and the standards for a high quality of living.  After the World War II, Canada experienced much growth in the industries of manufacturing, mining and the service sector that really changed the country from a rural economy to an urban and industrial economy (also similar to the United States).

As with most first world countries, Canada relies greatly upon the service industry.  The service industry employs approximately three quarters of all Canadians.  Logging and oil industries are also of importance to the country, which is quite unique among developed countries and is a result of Canada's natural resources. Ontario has a strong manufacturing community, focusing on the automobile industry.

Increased Trade with the United States Increases Economy

In 1989, the US-Canada Free Trade Agreement was passed, and in 1994, the North American Free trade Agreement (which included the country of Mexico) was passed.  These agreements caused an increase in trade with the United States and Canada experienced economic integration with the the United States, as well.  Thanks to an abundance of skilled labor forces, and natural resources, Canada enjoys strong economic conditions that continue to thrive and expand.

Canadian Fiscal Management

The fiscal management within Canada is superior, producing back to back, consecutive balanced budgets since 1997.  The current public debate among Canada's people is the topic of managing the publicly funded health care system and it's continuously increasing costs.

About 85% of Canada's exports are sold with its principal trading partner, the United States.  The United States depends on Canada for their largest supplier of energy, including uranium, gas, oil and electricity.  Exports account for almost a third of the country's gross domestic product.

Because of Canada's hydroelectric power use, and the fact that it is quite cheap and very environmentally friendly to generate, Canada is not only the largest exporter of energy but is also the highest  per capital consumer of energy.  The inexpensive costs of energy has led to the emergence of several large scale industries that rely greatly upon the use of energy.

Free Market Economy

Canada is considered a free market economy, although the level of intervention of the government has been known to be more than experienced in the United States. Although, government intervention in Canada is less than most European nations.

 The west of Canada and Ontario have a comparable gross domestic product per capita as the United States, and Alberta has the highest income than any state, region or province in North America.  Canada's gross domestic product has a lower per capita than United States overall.

Unemployment rates have been low within Canada, as the economy has been growing quickly and there are even federal governmental surpluses.  Due to the surplus, the Canadian dollar has increased in value when compared to most other country currencies over the past five years.

Overall, the economy in Canada is considered a strong one, and with growth in the technology sector as well as their export agreements with the United States, it is predicted to experience steady growth.