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  The Canadian Economy at a Glance (Updated April 2010)

Do you have any clear idea of what Canada's economy looks like? In terms of Gross Domestic Product (GDP) what are the percentages from oil and gas, forestry, financial, manufacturing etc.?

What portion of Canadian GDP do imports and exports make up? What products does Canada Import and Export? Which countries are important trading partners of Canada?

The actual figures would likely surprise most Canadians.

What is Canada's GDP by industry or sector?

Canadian Economy Annualized GDP sorted out by Industry or Sector as of January 2010

 

Data Source: Statistics Canada 
http://www40.statcan.ca/l01/cst01/gdps04a.htm 

From reading the financial news you may have been under the strong impression that Canada's GDP is now dominated by the commodities including particularly oil, gas, and various minerals. You may have also heard that manufacturing is no longer such an important component of Canada's economy. (And that therefore we should not worry much about all the manufacturing job losses that we hear about).

The actual figures show that "Finance, insurance and real estate and leasing and management of companies and enterprises" is by far the largest segment of Canada's economy.

Manufacturing, while it may be lower than in years past, is still a very large portion of GDP at 13%. (We understand that manufacturing includes refining industries).

Amazingly enough, mining and oil and gas extraction shows up way down in the eleventh row at only 4.2% of GDP. That seems shocking, the financial press constantly talks about the importance of the commodity sector to Canada's economy. Somehow I think this 4.2% understates the importance of this sector. But according to this GDP data it is far from being the most important sector.

Review the rest of the list and you will at least be more knowledgeable about the actual composition of the Canadian economy and the percent contribution of different segments. See the link to the latest available source data just above to see the raw data and you can calculate the precise percentage figures if desired.

Who Consumes Canada's GDP?

Canada's 2009 GDP was consumed in the following fashion:

Personal Consumption                                               58%
Government expenditure                                           22%
Business Investment (buildings and equipment)    17%
Government Investment                                            4%
Net Exports                                                                 -1% 
Total                                                                            100%

http://www40.statcan.gc.ca/l01/cst01/gdps02a-eng.htm

When you hear that Consumers "account" for about 60% of Canada's GDP, that does not mean that business accounts for little. In fact Business and government create the GDP and Consumers consume the largest share. This should not be considered surprising or alarming. Why else should things be produced except for consumption? (and for some investment to fuel future consumption).

A surprisingly large 21% of Canada's GDP consists of investment in longer lasting assets such as buildings (including houses) and equipment rather than consumed for immediate gratification.

What does Canada Export?

Canadian Economy Goods Exports by Category in 2009

 

Data Source: Statistics Canada
http://www40.statcan.ca/l01/cst01/gblec04.htm

Canada's exports amount to 30% of GDP.  (We are definitely a trading nation)

Machinery and equipment is the largest export segment representing 21.8% of total exports. The second largest category is Energy Products (oil, natural gas and other) at 21.6% of total exports. However, manufacturing including machinery and equipment plus automotive products accounts for 34% of Canada's exports. 

To Which Countries Does Canada Export?

 

Data Source, Statistics Canada
http://www.statcan.gc.ca/daily-quotidien/100406/t100406a1-eng.htm

We hear a lot of talk about global trade. We hear about China buying our commodities. But the statistics for 2009 show that the United States still accounted for the vast majority of Canadian exports at 75%.  Things may be changing rapidly and China may quickly start to be an important  "customer" country for Canada. But the fact is, for now, when it comes to exports, "it's the United States!, stupid".

What Does Canada Import?

Canadian Economy Goods Imports by Category

 

Data Source, Statistics Canada
http://www40.statcan.ca/l01/cst01/gblec05.htm

Canada's imports in 2009 amounted to 31% of GDP.  It seems surprising to see that one of Canada's larger import categories is energy products (oil and other) at 9.1% of total imports.

From Which Countries Does the Canada Import Goods?

Data Source, Statistics Canada
http://www.statcan.gc.ca/daily-quotidien/100406/t100406a1-eng.htm

The United States accounts for 51% of Canada's imports. China is the second largest source county and accounts for 11% of Canada's imports. The remainder appears to spread widely around the globe. 

END

Shawn Allen

Investorsfriend Inc.

Originally created November 3, 2007, last updated April 10, 2010, and minor edits to July 17, 2010.

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