Economy Canada
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 the 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 sluggishness in the United
States in 2001-02 had a negative impact on the Canadian economy.
Real growth averaged nearly 3% during 1993-2000, but declined in
2001, with moderate recovery in 2002-03. Unemployment is up, with
contraction in the manufacturing and natural resource sectors.
Nevertheless, given its great natural resources, skilled labor
force, and modern capital plant Canada enjoys solid economic
prospects. Solid fiscal management has produced a long-term budget
surplus which is substantially reducing the national debt, although
public debate continues over how to manage the rising cost of the
publicly funded healthcare system. Trade accounts for roughly a
third of GDP. Canada enjoys a substantial trade surplus with its
principal trading partner, the United States, which absorbs more
than 85% of Canadian exports. Roughly 90% of the population lives
within 160 kilometers of the US border.
GDP:
purchasing power parity - $958.7 billion (2003 est.)
GDP - real growth rate:
1.7% (2003 est.)
GDP - per capita:
purchasing power parity - $29,800 (2003 est.)
GDP - composition by sector: agriculture: 2.2% industry: 29.2% services: 68.6% (2003 est.)
Investment (gross fixed):
19.5% of GDP (2003)
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)