Economy of Canada The Heroic Economy

Economy of Canada The Heroic Economy

Canada, with a population of more than 30 million, having one of the leading and resilient economies in the world. As a successful trading nation, Canada is having a well-deserved reputation and enjoys a high standard of living, high-quality education, a marvellous infrastructure, and a highly-skilled labour force. However, the economy has not been the same. Despite hitting the peak, the economy faced a downfall but it hardly hits two times in the past 20 years. Besides this Canada is a country having an abundance of natural resources than its population. it is also considered an “energy superpower” because of its small population and abundance of natural resources.

After having a look at the statistical analysis you will come to know how strong Canada’s economy is!

The economy of Canada is one of the largest economies in the market. It is ranked 10th and 16th largest GDP nominal and PPP in the world respectively. In terms of natural resources, Canada raked 3 with an estimated value of $33.2 trillion by 2019.

Canada has the 3rd largest petroleum reserves and 4th largest exporter of petroleum and natural gas.

Statistical analysis:

GDP 2020
Nominal $ 1.6 trillion
PPP $ 1.8 trillion

GDP growth
2.0% 2018
1.7% 2019
-7.1% (expected) 2020
5.2% (expected) 2021

GDP rank
Nominal (2019) 10th
PPP (2020) 16th

GDP by Sector
Services 70.2%
Industry 28.2%
Agriculture 1.6%

GDP per capita in 2020
Nominal $ 42,080
PPP $ 47,569

GDP per capita rank
Nominal 17th
PPP 21st

Developed nations and their country’s economy rely heavily on the service industry which employs around three-quarters of Canadians. With an estimated value of natural resources valued at US$33.2 trillion in 2019. Canada becomes the third-highest/largest proven reserve in the world while the fourth largest exporter of petroleum and natural gas. Following which Canada is considered an energy sub power. due to its abundance of natural resources, while existing with a small population of 37 million inhabitants relative to its vast land area.

Historically ranking above the U.S., Canada is one of the least corrupt countries in the world, and one of the top trending nations, with a highly organized global economy while European nations on the Heritage Foundation index of economic freedom, therefore experience a low-income disparity. Moreover, the countries average household disposable income per capita is well above the OECD average. While the Toronto Stock Exchange is the ninth largest with a market cap, listing over 1500 companies with a combined market cap of over US $2 trillion.

An earning of CA$1.5 trillion as a result of trade in goods and services, by 2018 the Canadian experts dwell over the totalled CA $585 billion while those same goods were worth over CA$607 billion, a portion of which CA$391 billion originated from the USA while the other CA$216 billion from the non-US source of CA$25 billion.

Canada stands out as compared to other developed countries in its importance of the primary sector where Canada’s two most important industries consist of oil and logging industries. Where both logging and oiling has a sizable manufacturing sector, based in Central Canada, with the automobile industry and aircraft industry a focal point in his services. Moreover, Canada has also been ranked as the 8th largest commercial fishing and seafood industry around the world.

Apart from its role in food, Canada is one of the pioneers of global research of the commercial seafood industry in the world. They are global leaders in the entertainment and seafood industry in the world. A member of APEC, OECD, G7, G20, and WTO, and was earlier a member of NAFTA until the USMCA came into force in 2020.

Canada’s GDP in 2020:
In April, Canada’s GDP rose about 11.6% but then as the COVID-19 pandemic hit the economy. Both the output of manufacturing and construction decline to 20% same as the retail trade. Healthcare, social assistance, education ratios also declined to 10% and 9% respectively. Besides, the greatest declined was seen in lodging & food facilities and arts 64% and 56% in the entertainment and recreation sector. But The GDP is expected to increase in May up to 3%.

Economy in 2021
As of the report of the conference board of Canada if there is the ease in the virus containment measures then the economy will progress to a 6.7% and 4.8% rise in 2021 and 2022 respectively.

The provincial report of the conference board of Canada says that the economy of British Colombia is expected to rise as It has experienced less severe economic fallout as compared to the other provinces and was in a better fiscal position. Along with P.E.I and Manitoba, B.C would probably like to suffer less economic decline whereas Ontario and Quebec would like to cope worse during the pandemic.

The report shows a slight contraction of 5.5% for British Colombia in 2020, and a growth of 6.7% in 2021.
Furthermore, the Conference Board’s view depended “crucially” on U.S. developments. The surge in the COVID-19 cases may lead to a decline in household spending and then less demand for goods from Canada.

The report said that Canadian exporters will be hurt if U.S. economic growth drops below our current assumptions due to the inability of the Trump supervision and the governors of Florida and other knock states to stop the spread of Covid-19.

Also, the report said that if the economic growth of the U.S dropped then the Canadian exporters will be hurt.
Besides the large economic hit in the first half of 2020, Canada’s economy is constantly recovering.
The conference board of Canada believed that Canada’s GDP will expand up to 6.7% by the next year. Still, the economy is not expected to return to its pre-pandemic level until the second half of 2021 as the restriction will ease slowly.

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