Canada is now the ninth largest country in terms of GDP. It is counted among the most influential countries in the world. Canada’s Economy is similar in many aspects to that of the United States of America’s economy. The production patterns and living standards are similar. Canada now has one of the most industrialized and urbanized economies.
From after World War ll, Canada’s economy has grown substantially and steadily. Its primary industries include manufacturing, mining, and the service industry. Growth in all sectors has made Canada rich in agricultural export as well as industrial goods and services.
But, Canada stands out from its neighbours as the oil industry has made a major contribution to its GDP. The logging and oil industry is of prime importance to the Canadian economy. Canada is also famous for its automobile manufacturing industry. They have very low labour costs. The workers in this industry have healthcare and social security, all while maintaining low labour costs making the industry attractive to big automobile forms as well as foreign workers. This is one of the reasons why the American and Japanese automobile companies have set up their manufacturing facilities in Canada.
The economy of Canada differs from that of the United States in the aspect that the net volume of the United States. goods are imported, the net volume of Canadian goods are exported. Many have called the banking system of Canada more conservative when compared to that of the United States.
Canada’s economy as well as the economy of the United States are quite interlinked. Canada invests a great deal in the United States industries of mining, smelting, petrol industry and Chemical Industry. That makes Canada the largest trading partner, the United States has.
Canada’s Economic Geography
Being the second-largest country in terms of land area, Canada has an abundance of minerals. It had reserves of nickel, zinc, copper, gold, lead, molybdenum, potash diamonds, silver, timber, coal, petroleum, natural gas and many rare Earth elements.
Fishing and forestry have been major industries in Canada for a long time. However, nowadays mineral and energy resources are leading income generators. Canada thrives on the second-largest oil reserves in the world and the 21st largest natural gas reserves.
Due to the distribution of these resources being uneven, there have been variations in the Development of different Canadian territories. Oil and oil-related industries have led to a boom in Western Canada. Service industries as well as manufacturing industries have developed the economy for the population of Central Canada. However, there has been a slight decline in the fishing industries of New Brunswick, the province of Prince Edward Island, Newfoundland and Labrador and the province of Nova Scotia. Newfoundland and Labrador is back on its feet by shifting its focus to oil and natural gas resources in the province.
Maximum of its natural resources are exported to the United States because many industries are concentrated along the United States-Canada border. The United States. has also made huge investments in the Canadian economy, specifically in the finance industry, mining and smelting industries, petroleum and chemical industries as well as in the manufacturing of machinery parts and transportation equipment.
Canada has also made investments in the economy of the United States specifically in the manufacturing industry, wholesale trade, real estate industry, petroleum and finance industries as well as the service industry.