| Overview |
As
an affluent, high-tech industrial society, Canada today closely
resembles the US in its market-oriented economic system, pattern
of production, and high living standards. Since World War
II, the impressive growth of the manufacturing, mining, and
service sectors has transformed the nation from a largely
rural economy into one primarily industrial and urban. The
1989 US-Canada Free Trade Agreement (FTA) and the 1994 North
American Free Trade Agreement (NAFTA) (which includes Mexico)
touched off a dramatic increase in trade and economic integration
with the US. As a result of the close cross-border relationship,
the economic sluggishness in the United States in 2001-02
had a negative impact on the Canadian economy. Real growth
averaged nearly 3% during 1993-2000, but declined in 2001,
with moderate recovery in 2002. Unemployment is up, with contraction
in the manufacturing and natural resource sectors. Nevertheless,
given its great natural resources, skilled labor force, and
modern capital plant Canada enjoys solid economic prospects.
Two shadows loom, the first being the continuing constitutional
impasse between English- and French-speaking areas, which
has been raising the specter of a split in the federation.
Another long-term concern is the flow south to the US of professionals
lured by higher pay, lower taxes, and the immense high-tech
infrastructure. A key strength in the economy is the substantial
trade surplus. |
| Labor
force - by occupation |
services
74%, manufacturing 15%, construction 5%, agriculture 3%, other
3% (2000) |
| Industries |
transportation
equipment, chemicals, processed and unprocessed minerals,
food products; wood and paper products; fish products, petroleum
and natural gas |
