Canada, with a population of 38,929,902, is ranked 36th in the world, just behind Afghanistan. Located in North America, it spans 9,984,670 square kilometers, ranking 2nd globally, just below the Russian Federation.
Canada’s economic position in 2022 is strong, with a GDP of $2,161,483,369,422.01, ranking 9th globally. It follows the Russian Federation, which has a GDP of $2,240,422,427,458.58. In terms of GDP per capita, Canada ranks 17th with $55,522.44. It is behind Sweden, which has a GDP per capita of $56,424.28.
Canada’s economy is diverse, with key industries including natural resources, manufacturing, and services, contributing to its stable economic position on the global stage.
What are the economic activities of Canada?
- Primary activities: 1.6% of GDP.
- Secondary activities: 28.2% of GDP.
- Tertiary activities: 70.2% of GDP.
Primary Sector of Canada
Canada’s primary sector, particularly its agricultural activities, thrives due to its diverse climate and abundant natural resources. With 6.48% of the land dedicated to agriculture, the country produces a variety of crops like wheat, rapeseed, maize, and barley, along with animal products such as milk, soybeans, and potatoes.
Despite contributing only 1.6% to the GDP, agriculture plays a crucial role in the economy. The top ten agricultural products based on tonnage highlight the significance of crops like peas, lentils, and oats, showcasing the sector’s importance and variety.
The country’s geological diversity, from vast forests to mineral-rich lands, fuels its primary sector. Abundant resources like bauxite, iron ore, nickel, zinc, and copper drive the economy. Additionally, gold, lead, uranium, rare earth elements, molybdenum, potash, diamonds, silver, coal, petroleum, and natural gas contribute significantly. Hydropower is crucial, alongside fisheries, timber, and wildlife, highlighting the sector’s diverse reliance on natural wealth.
Canada’s oil economic activity is a key player in the global market, ranking 3rd in oil production with 4.45 million barrels per day. With reserves totaling 170.86 billion barrels, the country holds 10.22% of the world’s oil reserves, solidifying its position as a major player in the oil industry.
Canada’s gas production of 172.3 billion m³ in 2020 secures its 6th global ranking, boosting economic activity.
Secondary Sector of Canada
What is the secondary sector or what are secondary activities?
The secondary sector comprises industries that transform raw materials from primary activities into finished products for consumption. In Canada, main industrial products include transportation equipment, chemicals, minerals, food products, wood and paper products, fish products, petroleum, and natural gas.
In Canada, while manufactures make up a significant 44.15% of total exports in 2023, their overall importance may be overshadowed by other sectors like natural resources and services.
Tertiary sector of Canada
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Canada encompasses services that provide knowledge and expertise to enhance productivity and meet various needs. Key activities in Canada’s tertiary sector include healthcare and medical care, education and training, banking and finance, communication and information exchange, tourism and hospitality, transportation and logistics, and telecommunications. These services play a crucial role in driving the country’s economy and improving the overall quality of life for its citizens.
Among these, In Canada, tourism plays a pivotal role, contributing significantly to the nation’s economy. With an impressive 32,430,000 annual arrivals and a tourist arrival/population ratio of 0.833, the industry thrives. Popular destinations like the mesmerizing Niagara Falls and the enchanting Rocky Mountains attract visitors from around the world, boosting economic growth and cultural exchange.
Another example of tertiary economic activity is the mobile cellular economic sector, with approximately 35 million subscriptions, supporting technological growth by enhancing connectivity and fostering innovation across various industries.
Military Activities and Economic Sectors of Canada
The military is a good example of many economic activities working together. In the primary sector, Canada extracts resources for military use. The secondary sector includes the manufacturing of military equipment. The tertiary sector covers services provided by the military, while the quaternary sector focuses on military research and development. Lastly, the quinary sector involves high-level military decision-making and strategy.
In 2023, Canada’s military expenditure was $27,221.5 million, which is 1.23% of the country’s GDP. The active military force has 67,400 personnel, resulting in about 3 active military members for every 1,000 people in the country.
Biggest company in Canada
Which is the biggest company in Canada? The largest is Home Depot, a leading retailer in the home improvement industry. With a market value of approximately $310.13 billion USD, it operates in the tertiary sector. Home Depot was founded in 1978 and has grown to be a household name.
International Trade of Canada
Import Activities of Canada
Canada’s import activities are crucial, accounting for 33.71% of its GDP in 2023, totaling $558.46 billion, indicating a high level of importance.
Canada’s import activities are vital for its economy, with the US being the primary partner at 56%. Imports include cars, refined petroleum, vehicle parts, trucks, and crude petroleum from China (11%), Mexico (4%), Germany (3%), and Japan (2%).
Exports Activities of Canada
In 2023, Canada’s total exports amounted to $566.65 billion, accounting for 33.85% of its GDP. This signifies a medium level of importance, highlighting the country’s significant reliance on export activities for economic growth.
Canada primarily exports crude petroleum, cars, natural gas, refined petroleum, and gold. Its main export partner is the US at 75%, followed by China at 4%, Japan at 2%, the UK at 2%, and Mexico at 1%.
Canada economy challenges in 2024
Canada, a leading economy, faces challenges in 2024. Rising inflation post interest rate hikes, climate policy, immigration, and affordable housing are key government priorities. The country’s globally integrated markets and industries are vital, yet these issues demand attention for sustainable growth.
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