Additional material. The Canadian economy is among the world’s soundest one

Economy of Canada

The Canadian economy is among the world’s soundest one. Canada is the seventh-largest trading nation among the industrialised market economies and an active partner in international investment.

Although Canada is known worldwide as a rich source of raw materials and primary products such as wheat, oil, lumber and minerals, in recent years the structure of the Canadian economy has changed. The services sector (community, business and personal) is now paramount, employing over 70% of the Canadian work force. The growing role of knowledge-based activity is forcing re-examination of educational priorities and retraining programmes.

Since World War II the development of Canada's manufacturing, mining, and service sectors has led to the creation of an affluent society. Services now account for 68.5% of the GDP, while industry accounts for 29%. Tourism and financial services represent some of Canada's most important industries within the service sector. Manufacturing, however, is Canada's single most important economic activity. The leading products are transportation equipment, chemicals, processed and unprocessed minerals, processed foods, wood and paper products, fish, petroleum, natural gas, electrical and electronic products, printed materials, machinery, and clothing. Industries are centered in Ontario, Quebec, and, to a lesser extent, British Columbia and Alberta. Canada's industries depend on the country's rich energy resources, which include hydroelectric power, petroleum (including extensive oil sands), natural gas, coal, and uranium.

Canada is a leading mineral producer, although much of its mineral resources are difficult to reach due to permafrost. It is the world's largest source of nickel, zinc, and uranium, and a major source of lead, asbestos, gypsum, potash, tantalum, and cobalt. Other important mineral resources are petroleum, natural gas, copper, gold, iron ore, coal, silver, diamonds, molybdenum, and sulfur. The mineral wealth is located in many areas; some of the most productive regions are Sudbury, Ont. (copper and nickel); Timmins, Ont. (lead, zinc, and silver); and Kimberley, British Columbia (lead, zinc, and silver). Petroleum and natural gas are found in Alberta and Saskatchewan.

Agriculture employs some 2% of the population and contributes a similar percentage of the GDP. The sources of the greatest farm income are livestock and dairy products. Among the biggest income-earning crops are wheat, barley, rapeseed (canola), tobacco, fruits, and vegetables. Canada is one of the world's leading agricultural exporters, especially of wheat. Manitoba, Saskatchewan, and Alberta are the great grain-growing provinces, and, with Ontario, are also the leading sources of beef cattle. The main fruit-growing regions are found in Ontario, British Columbia, Quebec, and Nova Scotia. Apples and peaches are the principal fruits grown in Canada. More than half of the total land area is forest, and Canadian timber production ranks among the highest in the world.

Fishing is an important economic activity in Canada. Cod and lobster from the Atlantic and salmon from the Pacific historically have been the principal catches, but the cod industry was halted in the mid-1990s due to overfishing. About 75% of the take is exported. The fur industry, once vitally important but no longer dominant in the nation's economy, is centered in Quebec and Ontario.

The United States is by far Canada's leading trade partner, followed by China and Mexico. Machinery and equipment, chemicals, and consumer goods comprise the bulk of imports; crude petroleum and motor vehicles and parts rank high among both the nation's largest imports and exports. Other important exports are industrial machinery, aircraft, telecommunications equipment, chemicals, plastics, fertilizers, forest products, natural gas, hydroelectric power, and aluminum.