Canada’s economy is among the largest in the world, it is the 10th largest GDP by nominal ranking and 16th in terms of GDP (PPP) in 2019 (IMF, 2019). Today, it is highly industrialized with one of the World’s Highest per capita income rates. Ontario is the center of economic activity and the province with the largest manufacturing base and agricultural sector. Toronto in Ontario is the leading financial and services center. The country is exceptionally well endowed with natural resources: minerals, petroleum and natural gas, forests, extensive coastal waters for fishing, and rivers and falls for hydroelectric power (O’Conner, 2020).
Canada is among the world’s leading exporters of potash, uranium, nickel, zinc, and asbestos and a major producer of aluminum, cadmium, cobalt, copper, gold, and, in the 2000s, diamonds. There are large reserves of nickel, copper, and cobalt, as well as oil and gas reserves of oil, were estimated in January 2014 to be 174 billion barrels, and of gas, 2.0 trillion cubic meters.
Economic links with its giant neighbor were cemented by the Free Trade Agreement of 1989. This was subsequently enlarged to include Mexico under the North American Free Trade Agreement (NAFTA).
Both federal and provincial governments have undertaken privatization in order to reduce their fiscal deficits. Air Canada was privatized in the late 1980s and rail networks Canadian Pacific and Canadian National Railway followed by the mid-1990s. There are limits to the level of foreign ownership permitted in areas such as broadcasting, telecommunications, transportation, and uranium mining (O’Conner, 2020).
The Economy after Covid-19:
Emergency Care Benefit. An Emergency Care Benefit providing up to $2,000 per month, for up to 4 months will be provided to Canadian Residents who qualify.
GST Credit. The Goods and Services Tax credit (GSTC) will provide Canadians with a refund. If eligible, the maximum annual GSTC payment will double the amounts for the 2019-20 benefit year, boosting income on average around $400 for single individuals and close to $600 for couples.
Canada Child Benefit. If a family has children, then the maximum annual Canada Child Benefit (CCB) payment amounts will increase by $300 per child.
Wage Subsidies. The federal government has also announced “a 75 per cent wage subsidy for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. This will help businesses to keep and return workers to the payroll.
Figure 21.
Canadian Economy Online (CNN, 2020)
