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EconomicPoliticalStructural

Canada – Quick View
ECR score87.17 (Mar 2011)
ECR rank7 (Mar 2011)
Economic
GDP (2010 Q3)USD 402,073.40 million
GNI per capita PPP (2010)USD 38,668
FDI inflow (2010 Q3)USD 12,456.34 million
Inflation (Dec. 2010)2.4%
Central bank assets (2009)USD 62,776.89 million
Unemployment rate (Jan. 2011)7.8%
Government surplus (2009)USD 2,129.96 million
Tax revenue32.2% of GDP
Political
Government typeParliamentary Democracy
Recent political crisisNA
Economic freedom score (2011)6th
Freedom of information score (2010)21st
Corruption perception index (2010)6th (+2 places)
Structural
Birth rate (2005-2010e)10.6 per ‘000
Population balance (2009)Under 14 - 16.5%
Population balance (2009)Over 65 – 14%
Life expectancy years (2005-2010e)Male – 78.3 years
Life expectancy years (2005-2010e)Female – 82.9 years
Mortality rate (2005-2010e)7.4 per ‘000
Literacy rate99%
Internet access (2009)80.3%

[Top] Economic Overview

The country’s economy is a mixed economy and is amongst the major suppliers of agricultural products.  The country’s services segment is the major contributor to the GDP. Services sector (comprising finance, insurance, real estate - renting and leasing) is the single largest contributor to the GDP followed by manufacturing.

(Source: Statistics Canada)

The Gross Domestic Product (GDP) at current prices for Q3 2010 was CAD 1,621.6 billion, an increase of 0.7% over the previous quarter.

(Source: Statistics Canada)

Gross Domestic Product

The GDP at market prices was CAD 418,105 million in 2010 Q3, a decrease to 4.5% over the 2010 Q2 GDP figure of CAD 400,159 million.

Canada GDP at market prices

(Source: Statistics Canada)

GDP per capita

The country’s GDP per capita in 2009 decreased by USD 5,404 to USD 39,599 from 2008 per capita GDP of USD 45,003.

Canada GDP per capita

 (Source: IMF)

Gross National Product

Canada GNP at market prices

 (Source: Statistics Canada)

Canada’s Gross National Product (GNP) at market prices was CAD 412,732 million in 2010 Q3, a increased by 4.6% 2010 Q2 GNP of CAD 394,636. In 2010, GNI per capita PPP was USD 38,668.

(Source: Statistics Canada, UNDP page: 4)

Inflation Rate

Inflation rate in Canada for November 2010 was 2.0%. The inflation, in terms of consumer price change (monthly %), for December 2010 were registered at 2.4% due to increase prices of gasoline.

Canada Inflation Rate

(Source: bankofcanada, Statistics Canada)

Income Tax Rate

Income tax on individual incomes in Canada is taxed progressively at 15% to 29%.

Taxable Income

Tax rates (%)

1-41,544

15%

41,544-83,088

22%

83,088-128,800

26%

128,800 and over

29%

 

(Source: Canada Revenue Agency)

Corporate Tax Rate

The tax rate for Canadian-controlled small businesses is 11%. For other corporations, the net tax rate is 16.5%, with effect from January 1, 2011. The tax rate in 2010 was 18% and will further decrease to 15% effective January 1, 2012.

 (Source:  Canada Revenue Agency)

Tax contribution

Total tax rate (% profit)

Corporate income tax

16.5

Pension contribution -RAP

4.95

Fuel tax

0.7

Municipal property tax

6.1

Value added tax (VAT)

5.0

(Source: Canada Revenue Agency, World Bank)

Foreign Direct Investment

Canada FDI inflow

Canada FDI outflow

(Source: Statistics Canada)

Canada’s FDI outflow decreased $24,967 million in 2009 as compared with 2008. However, the inflow of investments into the country has increased by 22.51% from 2010 Q3 to 2010 Q1.

Banking Sector Assets

 

In 2009, banking sector assets increased by 10.13% as compared to the previous year.

 

Balance Sheet- Assets of Bank of Canada (CAD million)

 

2009

2008

Cash and foreign deposits

20.4

119.5

Loans and receivables

25,377.0

37,233.7

Investments

45,708.2

41,022.8

Property and equipment

150.5

140.5

Other assets

98.6

67.0

Total Assets

71,354.7

78,583.5

 (Source: Bank of Canada)

[Top] Financial Indicators & Government Financial

Consumer Price Index

(Source: Statistics Canada)

The Consumer Price Index (CPI) is on an increasing pace from August to November. In December 2010, it remains unchanged from November to 117.5.

Wholesale Price Index

Canada Wholesale Price Index

Base, 2005=100

 

(Source: World Bank)

 

In 2009, the Wholesale Price Index (WPI) is decreasing by 2.77% as compared to the previous year.

 

Money supply (Currency in Circulation)

 

At 2009 end, there were 1.8 billion bank notes in circulation, an increase of 43 million over 2008. These notes were valued at $55.5 billion.

 

(Source: Bank of Canada)

 

Government Expenditure

 

The total expenditure for the year 2009 increased by 2.46% as compared to previous year. The compounded rate declined 0.03% from the year 2005 to 2009.

Canada Government Expenditure

(Source: Statistics Canada)

 

Official exchange rate

 

In 2010, the monthly average exchange rate for US dollar was 1.03, i.e. 1 USD = 1.03 CAD

Canada Exchange rate

(Source: Bank of Canada)

 

Government finances

 

Fiscal balance

 

The fiscal balance for the year 2009 surplus of CAD 2,421 million, but there is a decline of 92.30% as compared to previous year.

 

Canada Fiscal balance

(Source:Statistics Canada)             

 

Total Revenue

Canada Total Revenue

(Source: Statistics Canada)

 

The country’s total revenue showed a continuous surplus from 2005 to 2008. In 2009, total revenue declined by 2.14% as compared to previous year.

 

Tax Revenue

 

The country’s tax revenue was 32.2% of GDP.

 

(Source: heritage.org)

 

Current Account Balance

 

Canada recorded a Current Account deficit by CAD16, 313 million in 2010 Q3, a continuous decline from 2009 Q1 to 2010 Q3.

 

Canada Current Account Balance

 

(Source: Statistics Canada)

 

Balance of Payments

 

 

2010 Q3

2010 Q2

2010 Q1

2009 Q4

2009 Q3

2009 Q2

2009 Q1

Current Account

-16,313

-12,238

-11,844

-11,026

-11,832

-11,156

-9,510

Capital Account

1,120

1,267

1,173

693

1,136

1,220

920

Financial Account

20,082

11,083

10,693

13,137

7,336

7,028

12,460

(Source: Statistics Canada)

[Top] Labour Force and Employment Overview

The labour force in the country was 18.6 million in 2010, an increase of 1.3% from the 2009 labour force of 18.4 million. The employment rate in 2010 was 61.8% and the unemployment rate was 8.0%.

In 2010, 8.95 million males were employed in the country accounting for 52.3% of the 17.1 million employed population, whereas 8.2 million females were employed accounting for the remaining 47.7%. 78% of the total employees were from the services sector. The labour force participation rate in 2010 was 67.2%, the participation rate of males was 71.8% and that of females was 62.6%.

(Source: Statistics Canada, Statistics Canada)

Canada Total Employment

(Source: Statistics Canada)

Unemployment rate

The unemployment rate for January 2011 was 7.8%, increased as compared to previous month. The unemployment rate for 2009 registered 8.3%, which increased by 2.2% as previous year. According to gender wise, the unemployment rate for men was 9.4% and that for women was 7.06%.

(Source: Statistics Canada, hrsdc.gc.ca)


Employment in Agriculture

In 2010, employment in agriculture showed a decline of 5.3% from the previous year.

Canada Employment in Agriculture

(Source:Statistics Canada, Statistics Canada)

 

Employment in Services

The services sector is the largest contributor to employment in Canada and has been on a continuous increase since 2001.

Canada Employment in service sector

(Source:Statistics Canada, Statistics Canada)

[Top] Political Stability

Government stability

Canada is a constitutional monarchy, wherein the Queen is the Head of the State. The Governor General and ten Lieutenant Governors (from the ten provinces) are the Queen's representatives. The Governor General is elected by the Queen on the Prime Minister’s advice. The Lieutenant Governors are appointed by the Governor General on the Prime Minister’s recommendation.

(Source: Canadian Heritage, Canadian Heritage)

The political parties active in the country include:

  • Animal Alliance Environment Voters Party of Canada
  • Bloc Québécois
  • Canadian Action Party
  • Christian Heritage Party of Canada
  • Communist Party of Canada
  • Conservative Party of Canada
  • First Peoples National Party of Canada
  • Green Party of Canada
  • Liberal Party of Canada
  • Libertarian Party of Canada
  • Marijuana Party
  • Marxist-Leninist Party of Canada
  • New Democratic Party
  • People's Political Power Party of Canada
  • Pirate Party of Canada
  • Progressive Canadian Party
  • Rhinoceros Party
  • United Party of Canada
  • Western Block Party

(Source: Elections Canada)

The current Prime Minister, Stephen Harper, was appointed in February 2006. David Johnston has been the Governor General since July 2010.

(Source: Prime Minister of Canada, Governor General of Canada)

Regulatory environment

The Government in Canada is based on a Parliamentary system.  The responsibilities are shared between the federal and the provincial governments

Canada Economic Freedom Indices.

(Source: heritage.org)

Canada’s economic freedom score is 80.8, making its economy the sixth freest in the 2011 Index of Economic Freedom. In North America, Canada ranks first. The country’s overall score is 0.4 points higher than last year.

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Canada is ranked sixth in 2010 on this list indicating low levels of corruption in the country’s public department.

Canada’s CPI ranking has improved since 2008 – it was ranked ninth with a score of 8.7 and in 2009 was ranked at eighth.

(Source: transparency.org)

Freedom of Information

The country’s media have a free environment to present their views and opinion. The Access to Information Act provides citizens the right to access government controlled information, with certain exemptions.

(Source: Library of Parliament)

The World Press Freedom Index 2010 ranks Canada at the 21st position with a score of 7.00, indicating moderate levels of government influence on the media.

(Source: rsf.org)

Judicial system

The provincial governments are responsible for the constitution, organization and maintenance of courts in the provinces. They do not have the power to appoint judges to the superior courts in the provinces. This power is vested with the federal government.

The courts are organised in a four-tiered structure, comprising:

  • The Supreme Court;
  • The Federal court of Appeal and various provincial courts of appeal;
  • The Federal Court, the Tax Court of Canada and the provincial and territorial superior courts of general jurisdiction; and
  • Provincial courts at the lower level

The provincial courts in the lowest tier are divided as per various subject matters such as the Traffic Division, Small Claims Division, Family Division, and Criminal Division among others.

There are about 750 court locations in Canada with the Supreme Court of Canada based in Ottawa. The three federally established courts, the Federal Court of Appeal, the Federal Court and the Tax Court of Canada are in seventeen locations. In addition, provincial and territorial courts are situated at more than 700 locations, including 15 permanent provincial and territorial appellate court locations.

(Source: Supreme Court of Canada)

[Top] Demographic Overview

Total Population

The total population of Canada as of October 1, 2010 was 34,238,000, increasing at a rate of about 0.36% over the previous year.

Population by Gender, 2010

(Source: UN, UN) 

In 2009, 16.5% of the country’s population were aged 14 years and below. In 2009, 21.1% women and 17.9% men (% of total population) were aged above 60 years of age.

(Source: Statistics Canada)

Birth and Death Rate

During the period 2005-2010, Canada had an estimated birth rate of 10.6 births per 1,000 people and estimated death rate of 7.4 deaths per 1,000 people.

(Source: UN, UN) 

Average Life Expectancy

In the period 2005 to 2010, the life expectancy rate for females was 82.9 years and for males was 78.3 years.

(Source: UN, UN)

 

Migration and Urbanisation

International migrant stock till mid 2010 was recorded at 7.2 million people. This was approximately 21.3% of the entire population. In 2007, 80.3% of the population resided in urban areas.

(Source: UN)

 

 

Poverty and Inequality

The country is ranked 12th on the Human Poverty Index with a score of 11.2. The Human Poverty Index focuses on the proportion of people below certain threshold levels in each of the dimensions of the human development index - living a long and healthy life, having access to education, and a decent standard of living.

(Source: UNDP)

 

 

 

Racial/Ethnic environment

Ethnic groups in Canada include:

  • British/Irish
  • French
  • Other European
  • Asian/Arab/African
  • Indigenous Amerindian
  • Mixed background

(Source: State.gov)

 

Human Development Index (HDI)

The country ranks 8th out of 169 countries on the United Nations’ Human Development Index in 2010 and is amongst countries with very high human development. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

[Top] Soft Infrastructure

Education/literacy rate

The country’s literacy rate is estimated at 99%. Canadian citizens, with certain requirements, have access to free public education. Education in the country is not controlled by the federal government. There are departments or ministries of education in the territories and at the provincial level. They are responsible for assessment of education at the elementary, secondary and post-secondary levels.

The country’s expenditure on education is 4.9% of its GDP and 12.3% of the total government expenditure. Both the figures are below OECD’s education expenditure average of 5.2% of GDP and 13.3% of total government spending.

(Source: OECD)

Healthcare resources

Canada’s health care system is public financed. Eligible citizens have access to hospitals and health services through 13 provincial and territorial health insurance plans.

The responsibilities for the health care system are shared between the federal and provincial governments.

In 2010, total health care spending in the country was projected to be CAD 191,639.1 million. The health care expenditure is projected to exceed CAD 5,600 per person in 2010. The projected expenditure will amount to approximately 11.7% of the country’s GDP.

Canada Health care expenditure

f=forecasted

(Source: Health Canada, Canadian Institute for Health Information page: 125)

[Top] Hard Infrastructure

Mass public transit

Means of transport in the country include air, rail, water transportation, truck transportation, transit and ground passenger transportation. Transportation accounts for a considerable share of the country’s GDP – 4.7% in 2009 or CAD 55.8 billion.

Roads in Canada span over 900,000 kilometres, with over 38,000 kilometres of national highway. The length of the rail network is more than 48,000 kilometres.

(Source: Statistics Canada, Transport Canada, Transport Canada)

Ports

The country has more than 300 commercial ports. The major ports in Canada include:

  • Port of Belledune
  • Port of Halifax
  • Port of Hamilton
  • Port of Montreal
  • Port of Nanaimo
  • Port of Port Alberni
  • Port of Prince Rupert
  • Port of Quebec
  • Port of Saguenay
  • Port of Saint John
  • Port of Sept-Îles
  • Port of St. John's
  • Port of Thunder Bay
  • Port of Toronto
  • Port of Trois-Rivières
  • Port of Vancouver
  • Port of Windsor

(Source: canada.gc.ca, canada.gc.ca)

 

Airports

There are about 884 Airports in Canada. The following are the major airports in Canada:

 

Town

Airport name

Runway length

Calgary

Calgary

12,600 ft

Edmonton

Edmonton Intl

11,000 ft

Winnipeg

Winnipeg Intl

11,000 ft

Bagotville

Bagotville

10,000 ft

Hamilton

Hamilton

10,000 ft

North Bay

North Bay

10,000 ft

Ottawa

Ottawa/Macdonald-Cartier Intl

9,700 ft

Toronto

Toronto/Pearson Intl

11,100 ft

Trenton

Trenton

10,000 ft

(Source: Aircraft-charter-world)

Telecommunications networks

In 2009, the internet usage in Canada was 80.3% compared with 73.2% in 2007. The use of internet by individuals was highest in British Columbia, followed by Alberta.

Canada Internet Use

(Source: Statistics Canada)

Canada had 24 million wireless subscribers at the end of September 2010.

(Source: Canadian Wireless Telecommunications Association)

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