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. The 1989 US-Canada Free Trade Agreement (FTA) and 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase in trade and economic integration with the US. As a result of the close cross-border relationship, the economic downturn in the United States in 2001 had a negative impact on the Canadian economy. Real growth averaged nearly 3% during 1993-2000, but declined in 2001. Unemployment is up, with contraction in the manufacturing and natural resource sectors. Nevertheless, 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 professionals lured by higher pay, lower taxes, and the immense high-tech infrastructure.

GDP purchasing power parity - $875 billion (2001 est.)

GDP - real growth rate 1.9% (2001 est.)

GDP - per capita purchasing power parity - $27,700 (2001 est.)

GDP - composition by sector
agriculture: 2%
industry: 29%
services: 69% (2001 est.)

Population below poverty line NA%

Household income or consumption by percentage share
lowest 10%: 2.8%
highest 10%: 23.8% (1994)

Distribution of family income - Gini index 31.5 (1994)

Inflation rate (consumer prices) 2.8% (2001 est.)

Labor force 16.4 million (2001 est.)

Labor force - by occupation services 74%, manufacturing 15%, construction 5%, agriculture 3%, other 3% (2000)

Unemployment rate 7.2% (2001 est.)

Budget
revenues: $178.6 billion
expenditures: $161.4 billion, including capital expenditures of $NA (FY00/01 est.)

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

Industrial production growth rate 0.5% (2001 est.)

Electricity - production 576.218 billion kWh (2000)

Electricity - production by source
fossil fuel: 25.3%
hydro: 61.22%
other: 1.56% (2000)
nuclear: 11.92%

Electricity - consumption 499.766 billion kWh (2000)

Electricity - exports 48.802 billion kWh (2000)

Electricity - imports 12.685 billion kWh (2000)

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

Exports $273.8 billion (f.o.b., 2001 est.)

Exports - commodities motor vehicles and parts, industrial machinery, aircraft, telecommunications equipment; chemicals, plastics, fertilizers; wood pulp, timber, crude petroleum, natural gas, electricity, aluminum

Exports - partners US 86%, Japan 3%, UK, Germany, South Korea, Netherlands, China (1999)

Imports $238.3 billion (f.o.b., 2001 est.)

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

Imports - partners US 74%, EU 9%, Japan 3% (2000)

Debt - external $1.9 billion (2000)

Economic aid - donor ODA, $1.3 billion (1999)

Currency Canadian dollar (CAD)

Currency code CAD

Exchange rates Canadian dollars per US dollar - 1.6003 (January 2002), 1.5488 (2001), 1.4851 (2000), 1.4857 (1999), 1.4835 (1998), 1.3846 (1997)

Fiscal year 1 April - 31 March

NOTE: The information regarding Canada on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Canada Economy 2002 information contained here. All suggestions for corrections of any errors about Canada Economy 2002 should be addressed to the CIA.