GDP of Canada. Economy of Canada. Industry and economic development in Canada

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:47

Canada is a highly developed prosperous country. Its economy has developed harmoniously for many years. This was facilitated by certain political, investment and financial factors. Thanks to this, Canada's GDP is considered one of the highest in the world.

The dependence of the country's economy on foreign capital is its distinctive feature. In what directions did the development of this state take place, as well as the main branches of economic activity of Canada will be discussed further.

General characteristics

Canada's economic development has been based on a diversity of natural resources. Thanks to the competent development of minerals existing on its territory, the state was able to establish partnerships with the United States, Great Britain and France. Thanks to trade, economic relations with the most developed world powers, Canada began to occupy a leading position in the global economy.

Today it is one of the most developed countries with a high standard of living. According to the main indicators of economic development, Canada is second only to the United States. This northernthe country is developing many industrial, agricultural and service industries.

The population of the state is 36.6 million people. The territory of Canada occupies 9,985 thousand km². The unemployment rate according to 2016 data was 7%, and inflation was 1.5%.

Canada has historically been a raw material base for the US. The financial situation of the northern country was significantly dependent on its neighbor. The US supplies Canada with a huge amount of its goods. Thanks to such a well-coordinated partnership, it was possible to achieve a high level of development in almost all areas.

Development history

Today, the rate of the Canadian dollar against the ruble is quite high and amounts to about 42.5 rubles. However, until the 19th century, Canada was inhabited by wild tribes of Indians (Hurons, Iroquois, Algonics). There was no question of the development of these regions at that time. The main source of income for the population was the sale of meat and animal skins.

The first colonizers were already living in the north at that time. There were also French settlements in the east. Over time, the Europeans who arrived on these lands began to develop agriculture. Also at this time, the development of mineral deposits began. The value of hunting has plummeted.

The city of Ontario became the center of agriculture, a large number of banks, industrial enterprises were concentrated in Quebec and Vancouver. In the second half of the 20th century, Canada experienced a dramatic industrial development.

At this time, the country needed a large number of skilled workersstrength. A flood of emigrants poured in here. The second major breakthrough in the development of the economy was made in 1973. At this time, large deposits of oil were found.

Dependency of Canada

Industries in the US and Canada, as well as many other sectors of the economy, operate in close cooperation. On the one hand, this determined the significant development of the northern country. However, this dependence had a negative impact on the development of Canada during periods of crises and other negative events of its neighbor. In the United States, events occurred quite often that could shake the economy of the northern state. The lion's share of Canada's trade (over 80%) is with America.

U. S. capital predominates in almost all areas of economic activity. The only exceptions are land ownership and the financial system. Such features of the organization of the economy led to the fact that in 2008-2009 the crisis that broke out led to massive negative consequences. Canadian authorities were forced to take urgent action to create support for many industries.

Canada's dependence on one trading partner has proven that such an organization has a detrimental effect on the economy, leading to the collapse of its main directions. Therefore, since 2015, Canada has been working to establish trade and financial relations with other countries of the world community.

Modern economic development

According to the IMF, Canada's per capita GDP in 2016 is 46,437 c.u. e. In WB reporting, this indicatoris 44 310 c.u. e. The country's GDP, according to the IMF, amounted to 1,682 billion c.u. in 2016

However, after the crisis that occurred in the economy in 2008-2009, Canada has a public debt. Today it exceeds the level of GDP by a quarter of a billion conventional units.

For the country with the most developed economy, this does not bode well. The state of the financial, social, industrial spheres largely depends on oil prices. Last year, the state's raw material exports decreased by 17%. The reason for this was speculation on commodity exchanges and significant fluctuations in energy prices.

According to surveys, this state of the economy has led to the accumulation of debts of the population. More than 50% of Canadians experience some difficulty in repaying loan interest. More than 30% of the inhabitants of this country today cannot pay off their debts.

Agriculture

As already mentioned, Canada's exports and imports are focused on the US. However, gradually the country begins to establish economic ties with other developed countries of the world. The internal organization of the economy consists of a developed manufacturing, industrial industry.

Annual growth in these sectors is determined at the level of 5%. New technologies are also intensively developing, for example, the production of mobile devices, computer and aviation equipment. Increased attention is paid to the development and production of medicines.

Agriculture plays a significant role in the country's economy. Canada ranks 5th in the world in grain production. In terms of wheat exports, the state ranks third in the world. Potatoes and corn are also grown.

Industry

Significant changes have taken place in the industrial sector. Over the past few years, Canada has experienced these metamorphoses. The country's economy used to be built mainly on the oil, gas and timber industries. Due to the events that took place in the commodity market in 2008-2009, the country's government revised the strategic orientation of economic activity. As a result, completely different industries have become mainstream.

Industry in Canada today is focused on the production of electricity, telecommunications. Considerable attention is also paid to the production of new drugs, as well as scientific research in this direction.

The industrial machinery industry is rapidly developing, as well as the production of synthetic materials, plastics and various polymers.

Services

Canada has paid special attention to the service sector in the past few years. The population of the country mainly works in several sectors of this direction. These include the hotel business, catering, and the telecommunications sector. Considerable attention is paid to the wholesale trade and development of business ideas for commercial enterprises.

In an effort to reduce the government deficit,the government cut government spending. This led to the partial transfer of municipal institutions to private ownership. Small business support programs were revised, and the state had to abandon many of them. Subsidies for public needs have also been reduced. Such changes affected mainly the representatives of the working class.

Banking system

The country's banking system consists of insurance and mortgage companies. They contribute more than 16.5% to the country's total GDP. About 6% of the working population is involved in this area. The Central Bank of Canada is responsible to Parliament and performs a number of functions. It issues Canadian money, conducts financial policy, and also controls other banking organizations.

There are three main types of structures. These include charter, trust and credit organizations. All of them are required to provide residents of the country with services for exchanging currencies, opening accounts or issuing loans.

Scientific and technological development

The high level of Canada's GDP is due to the conduct of competent scientific, research activities and its comprehensive support by the ruling bodies. The most significant discoveries were made in the field of communication systems and information transportation.

3.9% of the total GDP comes from the telecommunications industry. There are 3 TV networks within the country. One of them has state subordination, and the other two are private. The promotion of the municipal television network is carried outat the expense of budgetary funds. Private companies ensure the normal functioning of their organizations through proper advertising.

Also, developments are underway in the field of space technology and aviation. Many strategic discoveries have been made in this direction. A new remote monitoring system has been developed. Bioengineering and medicine are developing. Especially great achievements are observed in the field of laser surgery, organ transplantation and genetics.

Workforce

Canada's GDP comes from highly skilled workers. The working-age population is about 15.5 million people. The number of new jobs is constantly increasing. Half of Canadians of working age have a university degree. Most (about 70%) of them are women.

Interethnic migration has played a decisive role in the development of the country's economy. The rights and obligations of employees are guaranteed by law. A sufficient number of specialized specialists who migrated to Canada allows the development of industry, agriculture and the service sector.

Post-crisis period

As mentioned above, the rate of the Canadian dollar against the ruble is quite high today. The state does not lose its positions, it supports the social, financial, industrial, agrarian spheres, etc. The reasons that led to the crisis were determined in the state a long time ago. Despite this, even as it stands today, Canada ranks 14th in the world in terms of GDP and 10th in terms of GNP.

Since 1993 inthe country was determined by a significant economic recovery. However, in 2008 the crisis led to a state budget deficit. The high exchange rate, the decline in demand on the world market for Canadian-made products also affected the financial stability of the country. In its orientation, the state and now in many respects resembles the US economy.

Having considered the level of Canada's GDP, as well as the factors determining it, we can say that this is one of the most developed countries in the world. It has a strong economy and a high standard of living.