Professional Documents
Culture Documents
GDP Analysis of Canada
GDP Analysis of Canada
STATISTICS:
Currency: Canadian Dollar
GDP by sector
agriculture: 1.6%, industry: 27.7%, services: 70.7% (2016 est.)
GDP: Gross Domestic Product: GDP is the value in terms of money of all
finished and unfinished goods in terms of money within the limits of a
country calculated under a specific time period. GDP can be calculated on
an annual as well as quarterly basis depending on the country’s economic
set-up.
Canada has most of its business that is owned by the private sector with
limited state control in matters of business like healthcare, transportation
and utility.
Major factors that contribute to its GDP are its tremendous natural
resource reserve in terms of coal and petroleum which often makes
Canada being referred to as the energy superpower of the globe.
Canada has its membership alliance with economic agencies like Asia
Pacific Economic Cooperation, North American Free Trade Agreement,
G7, Organisation for Economic Cooperation and Development, G20 and
World Trade Organisation
AMERICAN IMPACT ON CANADIAN ECONOMY:
Free trade and elimination of tariff between the two countries has led on
to both the country achieving success in their economy from net export
and import.
Canadian and American economies are very similar contrary to the fact
that it’s smaller in comparison to American Economy.
These factors of higher wage and higher disposable income results in the
Canadian workers spending more on purchase of goods which results in
increase of production and new types of product.
Exports of goods and services fell 0.4% after increasing 2.2% in the
previous quarter. Exports of goods were lower, while those of services
were higher. Imports were up 0.4%.
Low level oil prices and exports to USA made the GDP stable this year
Second Rank is bestowed upon the business sector services ranging from
finance and communication.
Increased demand for this sector has led to a higher development of this
industry since past few years.
The two of the largest sectors are education and healthcare but they are
under the government dominance.
Healthcare has experienced significant growth over the past decade and is
currently the third largest sector in the country.
The net energy products exports in the country accounted for about 2.9%
of the GDP in 2009.
Canada holds vast oil and gas reserves that are concentrated in the
Northern Territories, Alberta, and British Columbia.
The oil sands of Athabasca put Canada at third in size of global oil
reserves after Venezuela and Saudi Arabia.
Manufacturing accounts for more than 10% of the Canadian GDP with
manufacturers exporting more than $350 billion worth of goods and
services every year.
Wheat and Grain exports make the agriculture sector of Canada a major
role-player in Canadian Economy.
With over 40% of forest cover, forestry is a major part of the agriculture
sector and forest product exports are a major part of Canadian Trade.
All the countries faced economic hindrances in the past few years, it was
the same with Canada but it’s banking sector remained unaffected by the
recession and due to its large housing sector and natural resources
reserve, it rebounded back to a stable state soon.
The first and the major obstacle that Canada faces is internalised and
inherent to the fact that it goes on to live beyond its own strength or
means.
Due to the lavish living standard that Canadians wants and the
government provides, it faced a deficit budget of 3.3% of its GDP.
The second problem is the lack of an economic slack. Due to which the
output gap in the economy is -1%.
The industry fails to meet the demand of the citizens and supply of labour
due to the laidback nature of economy in Canada.
While other countries are doing their best to emancipate and accelerate
their economies, Canada moves forward at a sluggish rate with a Snail’s
pace because of the weight of the above problems tied to the feet of its
economy.
STEPS THAT CAN BE TAKEN TO IMPROVE THE GDP OR
ECONOMY:
Diversification of Trade with USA being the major trade partner as well
as initiating trade with other countries can be a major step towards
presenting a better picture of Canada in the globe as well as stitch the
scars in its economy.
The fact that the government still holds two major sectors: Education and
Healthcare, detriments the private sector by limiting two huge options
and hence by privatisation of both these sectors, a higher GDP can be
achieved.
The tourism industry is a vast one in Canada but it hasn’t been able to use
it efficiently. Tourism regulations and visa duties can be loosened.
CONCLUSION:
Even though Canada is a country with a stable mixed economy at the present, a
bit more diversification can help it in the long run. Privatisation of government
monopoly-held sectors can be a first step. It has a major risk of running into
inflation due to it not being able to meet the demand of its prospective citizenry.
It has failed to utilise the vast amount of resources in a meticulous way. If Canada
shifts its focus from show biz and shifts it to its economic policies, it would
receive a higher outpour. The present government has been doing an efficient job
in maintaining the track record well. Hope it continues to take steps to prevent
the economy from drowning.
BIBLIOGRAPHY:
https://international.gc.ca/world-monde/assets/pdfs/Canada-2017-
Hamburg-Growth-Strategy_eng.pdf visited on 20.02.2019
https://www.pwc.com/ca/en/services/deals/whats-the-deal-blog/2016-
12-new-challenges-for-the-canadian-economy.html visited on
20.02.2019
https://www.focus-economics.com/countries/canada visited on
20.02.2019
POSSIBLE SOLUTIONS
CONCLUSION
BIBLIOGRAPHY
MACRO-ECONOMICS ASSIGMENT
INTERNAL EXAMINATIONS
Submitted by:
Arya Senapati
B.A.LLB (B), 1883160
Submitted to:
Mrs. Snigdha Sarkar,
Faculty, Economics, KiiT School of Law