1-Canada's economic structure and growth

Known for its abundant natural resources (oil, natural gas, water, metals and minerals, forest products, agriculture) Canada is also a post-industrial economy:  

• Service industries (transportation, communications, finance, civil engineering, trade, real estate etc.) contribute 70% to Canada's Gross Domestic Product (GDP)

• Hi-tech industries contribute in a major way to its economy (aerospace, biotechnologies, pharmaceuticals, medical equipment, information and telecommunications, chemicals, bio-food, automobiles)

• Canada's innovation and know-how intensive industries are world renowned for their products.

   

Source : Statistics Canada (January 2007)

Over the past decade Canada and the USA have had the largest rates of economic growth among G7 countries.

GDP yearly growth rate  1995-2005 average (%)

Source : OECD

Among G7 countries, the percentage of adults who have a job is the second highest in Canada (second only to the UK): almost 3 adults in 4 are employed.

Employment as a percentage of the adult population (2005)

Source : OECD

According to OECD economic projections, over the next few years, Canada will have the strongest economic growth among G7 countries.

2-North-American Free Trade Agreement and foreign trade

Canada is very competitive in foreign markets and its economy is trade intensive: trade represents 70% of its GDP.

Here are Canada's major exports:

• Metals and minerals such as aluminum, zinc, copper, nickel or gold

• Forest products (wood, pulp, paper)

• Farm products

• Petroleum and natural gas

• Automobiles and parts

• Airplanes, helicopters and parts 

• Machines

• Electronic products

• Computer, information and engineering services 

• Financial services

Merchandise exports (Canada, 2006)

Source : Statistics Canada

Free trade access to a 435 million persons market

Member of the World Trade Organization Canada is signatory to several trade agreements, the most important being the North-American Free Trade Agreement (NAFTA) with the USA and Mexico.

The NAFTA has facilitated and increased the trade of goods and services between the 3 signatory countries.

Canada is thus very integrated with its North-American neighbours and its products and services have access to a market of 435 million persons.

Useful links

Statistics Canada
Industry Canada
Finance Canada
Bank of Canada
Canadian Foreign Policy
Trade Negotiations and Agreements
North-American Free Trade Agreement (NAFTA)
World Trade Organization

 3-Provincial economies: highlights

Each one of Canada's 10 provinces and three territories has its particular economic strengths some of which are summarized in the following paragraphs. For additional details please consult the useful links section presented below.

Canada's GDP distribution among the 10 provinces (2005)

Source : Statistics Canada

Atlantic Provinces

The four eastern-most provinces of Canada are the Atlantic Provinces and they include Prince Edward Island, Newfoundland and Labrador, Nova Scotia as well as New Brunswick. Representing 6% of Canada's economy their economies are generally diversified, with an emphasis on the following:

Ontario

Ontario' economy is the largest in Canada (about 40% of national GDP). Here are some of its main features:

• Very diversified, with large service industries such as finance, real estate, transportation and trade and also Canada's largest manufacturing industry.

• Toronto, its capital, has the 4th largest capital market in the world and its stock market is the second in size (volume of transactions) in North-America.

• One-fifth of Ontario's GDP is generated by manufacturing, the most important sectors of which are transportation equipment (mainly automobiles and related industries), metal products, food transformation, chemical products, electrical and electronic products.

• About 50% of Canada's information and telecommunications industries (ITC).

Quebec

Quebec has Canada's second largest economy with about 21% of the country's GDP. Please read our web page on Quebec's economy for a detailed presentation.

Prairies

Canada's three Prairie Provinces are Manitoba, Saskatchewan and Alberta. Manitoba, the largest of the three, has a well diversified economy with significant manufacturing and service industries, including transportation. In Saskatchewan about one fourth of the GDP is generated by primary industries (agriculture, oil and natural gas, potash and other natural resources).

Alberta's strong economic growth has been stimulated by booming oil and gas and petrochemicals. Energy sectors generated about 28% of Alberta's GDP in 2005. This province produces 81% and 68% of Canada's natural gas and petroleum respectively. In 2005 Canada had the world's second largest oil reserves, and was the third most important natural gas producer. Strong economic growth has led to large population increases in Alberta in recent years (3% in 2006 only) due to inter-provincial migration and immigration. Significant labour shortages persist in several trades and professions in this province.

British Columbia

BC's economy is traditionnally natural resource based with an important forest sector and a significant forest products industry, both in terms of production and in terms of exports. Its economy is gradually diversifying and the finance and real estate sectors are growing in importance. Located on the shores of the Pacific Ocean, BC plays a strategic role in the rapidly expanding trade between North-America and the emerging markets of Asia, mainly in China and India.

Useful links

To Ontario
Saskatchewan Industry and Resources
Alberta-Canada.com
Guide to BC Economy
Province of British Columbia

4-Energy and natural resources

Petroleum, natural gas and hydroelectricity

Canada is both a producer and net exporter of energy. The two major sources of energy are hydrocarbons (oil and natural gas) and hydroelectricity.

Hydrocarbons are produced in Alberta, offshore of Newfoundland and Labrador and Nova Scotia as well as in Saskatchewan. Very large investments have been and continue to be made to develop Alberta's hydrocarbon-rich tar sands. These contain the world's second largest oil reserves after those of Saudi Arabia.

Canada has abundant water resources and a geography which allows for the production of low cost hydroelectricity. This renewable energy provides for two thirds of Canada's electricity needs . According to the World Atlas and Industry Guide, International Journal on Hydropower and Dams (Aqua-Media International, UK, 2003) in 2002 Canada was the most important producer of hydroelectricity ahead of the USA and Brazil. In 2007, it is in second place, behind China.

Hydroelectricity is most important in the provinces of Manitoba, British Columbia, Quebec and Newfoundland and Labrador.

Natural resources

Other than energy, Canada has abundant natural resources and, early on in its history, the country's economic development was driven by natural resources like forestry, fishing, trapping and mining.

They remain important contributors to exports, employment and wealth, though their overall relative share of Canada's economy has steadily declined (the exception being hydrocarbons, diamonds and a few other products).

Mining

On a world scale, as a producer of mining products, Canada (2004) ranks as follows: first for potash and uranium and among the first five largest producers of aluminum, asbestos, cadmium, cobalt, gypsum, magnesium, molybdenum, nickel, platinum, salt and titanium concentrates. Canada also produces iron ore, copper, gold, silver, diamonds etc. In fact it is fast becoming one of the world's top diamonds producers.

Some of the country's provinces are, by themselves, larger producers of minerals and metals than several countries. For instance, the province of Quebec is one of the world's largest 10 producers of such products.

Forestry

Forestry is a significant source of jobs and exports, employing almost one million persons, half of those in the transformation of wood into products such as wood for the construction industry, newsprint, wood pulp and other paper products. Quebec is the world's largest newsprint exporter, delivering 60% of the North-Eastern USA's needs.

One third of Canada's territory is covered by forests, mostly boreal (77%) and tempered. More than 90% are public owned. Canada also is home to approximately 10% of the world's forests, 30 % of its boreal forests, 25% of its humid lands and 20% its fresh water reserves.

Useful links

Mining in Canada
Canada’s forests
Canadian forest service

5-Aerospace

Canada is home to the third largest civilian aerospace industry. Facts and figures:

• Over 400 enterprises with more than 75,000 employees including:
  • 12,000 engineers and scientific personnel
  • 20,000 technicians and technologists
• Sales amounting to $22 billion (2005), 80% of which is exported
• World leader in:
  • the conception and production of regional aircraft, landing gears, small engines, flight and marine simulators
  • the production of civilian helicopters, flight cells and air conditioning systems for the industry
  • space robotics, high speed satellite interactive communications and tele-detection technologies
• Presence of leaders in turboprop engines and business planes
• More than a thousand aircraft maintenance, repair and overhaul facilities.
• Suppliers of fuselages, wing structures, integrated electronic control systems, communication and air control systems etc.

   

Leaders present in Canada

Source: Adapted from "Pursuing Excellence in Canada's Aerospace Sector", Industry Canada

Canada's share of international aerospace markets

6-Life science industries

Canada is also recognized as a leader in life science industries such as medical equipment, biotechnology and pharmaceuticals.

Medical equipment - Facts and figures

• 1,500 enterprises and 35,000 employees

• Sales of $5 billion

• The USA is Canada's main medical equipment export market

• World renowned enterprises such as 3M, Bard, i-STAT, McKesson, Baxter, Siemens, Sulzer Mitroflow, Tyco and St. Jude

• Most of these are based in Ontario ( 50% of sales), in Quebec (25%) and in British Columbia.
  
  

Biotechnology - Facts and figures

• Canada is one of the five most advanced countries in biotechnology

• It has the greatest number of per capita biotech businesses

• lt ranks second in terms of the absolute number of biotech businesses right behind the USA, a country which is more that 10 times larger than Canada. 

• $3,8 billion in sales (2003)
  
  

Eight Canadian cities are among the ten most cost competitive locations for biotech businesses among all G7 countries. These are:

1. Sherbrooke (Quebec)

2. Moncton (New Brunswick)

3. St. Johns (Newfoundland and Labrador)

4. Halifax (Nova Scotia)

5. Quebec (Quebec)

6. Chilliwack (British Columbia)

7. Saskatoon (Saskatchewan)

8. Charlottetown (Prince Edward Island)
   
   

Biotech specialties:

• genomics

• proteomics

• bioinformatics

• immunotherapies

• protein engineering

• new drug delivery mechanisms

Biotech enterprises - Sector distribution

Source: Biotechnology Use and Development Survey, Statistics Canada (2001)

Pharmaceutical products - Facts and figures

• Most competitive investment location among G7 countries

• $15 billion sales 

• Over 30,000 employees

• Innovative industry : 10% of new pharmaceuticals have been discovered and developed in Canada (2001)

• Most multinationals involved in pharmaceuticals have research or production facilities in Canada. For instance: AEterna, Zentaris, AstraZeneca, Bristol-Myers Squibb, Eli Lilly, GlaxoSmithKline, Hoffmann-La Roche, Merck Frosst, Pfizer, Sanofi-Aventis, Wyeth.

• Quality, efficiency and cost effectiveness make Canada a prime location for clinical trials.

• According to KPMG the total cost of setting up and operating a drug manufacturing facility in Canada, is among the lowest among industrial nations.
  
  

Some figures for health research:

• 30,000 researchers

• 16 medicine faculties

• 100 university hospitals and research institutes

   

7- Information and telecommunications (ITC)

Facts and figures:

• Large information and telecommunications infrastructure networks

• Almost 50,000 businesses operating mostly in software and information services (72,3%), rental and wholesale (11,4%) and manufacturing (7,2%)

• Not only world leaders such as CGI, Nortel, Research In Motion, Sierra Wireless, Ericsson, Nokia, Motorola or Siemens but also small and medium sized enterprises (97% have less than 100 employees and 80% have less than 10)

• 545,000 employees, 40% of which have a university degree

• $5 billion R&D (2004)

• 70% of output is exported

• Privileged access to the US and Mexican markets

• More than 25,000 university graduates annually in mathematics, engineering and pure and applied sciences.
  
  

8-Automobile

Canada is the third largest exporter of automobiles and automobile products, right behind the USA and Japan. Facts and figures:

• 80% of cars built in Canada are exported to the USA

• Production represents 16% of all North-American production

• The following companies have plants in Canada: DaimlerChrysler, Ford, General Motors, Honda, Suzuki and Toyota

• 895 part manufacturing plants

• 23 car assembly plants

• Largest manufacturing industry (12% of all Canadian manufacturing output)

• 171,300 employees

• $100 billion worth of shipments annually
  
  

9-Chemicals

Facts and figures (2003):

• 2,145 enterprises and more than 90,000 employees

• Major products: agricultural chemicals, pharmaceuticals, petrochemicals, industrial gases, pigments, other organic and inorganic chemical products, resins, sythetic fibres as well as specialized chemicals

• 21 of the world's 25 largest chemical producing companies have manufacturing facilities in Canada

• Sales exceed $42 billion, 50% in exports

• Supplier to Canadian biopharmaceuticals and to aerospace, automobile and resource transformation businesses
  
  

The chemicals industry is mostly concentrated in Alberta, Ontario and Quebec:

Alberta
North-America's low cost ethylene producer
The two world largest continuous production ethylene cracking installations (located at Joffre and Fort Saskatchewan)
Vast production capacities in ethylene, polyethylene, alpha olefin and glycol ethylene


Ontario
large variety of petrochemicals
vast chemical products center in Sarnia (ethylene cracking complex)
secondary center in Kingston's region (petrochemicals)
several specialized chemical manufacturing plants in the Toronto-Windsor corridor.


Quebec
the chemical industry is concentrated in Montreal
Diversified array of products. Low electricity costs make it an ideal location for the production of inorganic chemicals

Several installations produce propylene, aromatic hydrocarbons and terephthalic acid

10-Agro-food

The Canadian agro-food industry is high-tech. Canada is:

• the world's third largest exporter of agro-food products: more than $20 billion worth

• world leader in food safety, innovation and green production.

Useful links

Invest in Canada
Aerospace Industries Association of Canada
Pursuing Excellence-Canada's Aerospace Sector (2007)
Canadian medical device industry (MEDEC)