Canadian economy is expected to go through a period of weak growth due to prolonged uncertainty in global markets. A slowdown in external trade and ongoing trade policy uncertainty are expected to weaken Canadian exports thus reducing business investment. The labour market in Canada has been strong, supporting incomes, but employment growth is expected to slow down.
The Bank of Canada is expected to reduce rates modestly in the coming quarters to support demand. This will help check inflation. Risks are expected to remain in the Canadian housing market, which shows signs of a rebound after a period of stabilisation that was helped by macroprudential measures. Another risk that can affect Canadian economy is that the United States-Mexico-Canada Agreement is not ratified yet.
ICT, travel and tourism, transport, crude petroleum oils, refined petroleum oils, coal, petroleum gases, insurance and finance, wood, wheat, oil seeds, automotive, machinery, gold, diamonds, aluminum and textiles are major industries of Canada. In 2017, Agriculture industry contributed 1.6% to GDP of Canada. Manufacturing had a share of 28.2% while services industry had a share of 70.2% of GDP in 2017.
In 2017, Services industry exports was valued at USD 87.2 billion for Canada. Electronics export accounted for USD 12 billion, machinery for USD 38.6 billion, vehicals for USD 71.5 billion, chemicals for USD 41.2 billion, metals for USD 31.9 billion, minerals for USD 92.8 billion, stones for USD 17 billion, textiles for USD 8.59 billion and agriculture for USD 77.4 billion in 2017.
Canada is a country in North America consisting of 10 provinces and 3 territories. Located in the northern part of the continent, it extends from the Atlantic to the Pacific and northward into the Arctic Ocean. At 9.98 million square kilometers in total, Canada is the world's second-largest country by total area, and its common border with the United States is the world's longest land border shared by the same two countries.
Canada had estimated population of 37.465 million in the year 2019 and expected to reach 39.23 million by 2024. Canada’s 18.845 million is expected to be employed in 2019 and the unemployment rate is expected to be 5.891% of total labor force.
Canada’s real gross domestic product (GDP) is expected to be around CAD 2083.35 billion in 2019 whereas the nominal GDP is expected to be CAD 2289.45 billion. This will result in GDP deflator 109.893. Per capita GDP is estimated to be at USD 46419.23 whereas purchasing power parity (PPP) based per capita GDP is estimated to be at USD 50626.18.
The output gap for Canada in 2019 is expected to be negative at 0.37% of the potential GDP it is expected to grow at a CAGR of 175.13% and reach 0.108% of the potential GDP.
In 2019, Canadian government’s revenue is expected to be CAD 918.159 billion whereas the expenditure is expected to be CAD 932.648 billion. This will result Canadian government’s net lending / borrowing negative at CAD 14.488 billion in 2019 indicating that enough financial resources were not made available by the government to boost economic growth.
The current account balance for Canada was estimated to be negative at USD 53.684 billion for the year 2019 and is expected to decrease at a CAGR of 2.40% and reach USD 54.702 by 2024. This negative current account balance indicates the Canada is net borrower from the whole world.
Canada is ranked 23 among 190 economies in the ease of doing business. The rank of Canada deteriorated to 23 in 2019 from 22 in 2018. Ease of Doing Business in Canada averaged 16.25 from 2008 until 2019, reaching an all-time high of 23 in 2019 and a record low of 8 in 2009.
*If Applicable.