Canada has a rich economy. For years its success was fuelled by the huge amounts of raw materials that were extracted from the ground and the old industrial base of the country grew exploiting large amounts of these riches. As time has passed the original industries have continued to flourish but the economy has become far more diversified.Central Canada is home to a number of American and Japanese branch plants for the auto-mobile industry. This has attracted associated Canadian industries into the area. There are more cars produced in the country than in the States as a result of the lower labor costs and the highly educated workforce. In fact these reasons are why many other American companies are located in the region and the worry is that the economy will become too dependent on them with the blue collar jobs going to Canadians while the higher paid posts are reserved for Americans. There are however, a large number of large Canadian manufactures that still operate today.
Oil platforms on the Alberta horizon
Canada is one of the few developed nations that is a net exporter of energy and has the third largest oil reserves in the world. The largest fields are located in Alberta which has the highest GDP of
any state in Canada. In fact its GDP per Capita in 2013 was 84,390 Canadian dollars which is higher than the United States. Alberta is the second largest exporter of natural gas in the world and many industries connected to the oil industry are located in the area. The country provides the States with 43% of its oil imports. The vastness of Canada means that much of its supplies are still untapped and in 2005 25,000 new wells were drilled. Canada is one of the leading producers in the world. The vast wide open prairies and rich soils make ideal growing conditions. The scientists have managed to produce different strains of wheat that are able to grow in the shorter growing season. Of the 25 million tons grown each year around 15 million is exported to other countries.
Cattle grazing on the prairies
Canada also farm large amounts of livestock. The prairies have proved ideal for cattle and sheep to roam freely. In 2016 the country exported 47% of its beef production at a value of 3.6 billion US dollars. As in most developed nations the country has seen a rise in popularity of its service industries. As the nation has become increasingly wealthy, it has needed more services. Today it employs three quarters of all Canadians and a large number are employed in the malls that provide homes for the retail trade. The major urban centres attract the largest malls and also these areas provide many jobs in business and financial services. The education and health sectors are also large employers in the country.
One of the fastest grow service industries is tourism. Both national and international visitors are attracted to the variety of landscapes and activities that the country provides. The country has a vast outback which few other Nation’s can replicate. The high tech industry has really gathered pace in the country and employs over 800,000 people. In 2015 it generated 117 billion US dollar and contributes over 7% of the country’s economic output. The highest concentration of high tech industries are found in Toronto and Vancouver where there is an abundance of a highly educated workforce.
The economic outlook for Canada is a positive one. It has huge natural resources that are un-taped and it has a healthy variety of industries. Its high standard of education means that the country will continue to develop its high tech industry.With the United States on its door step it has a huge market that is available to many of its companies. It economic success will depend very much on what trade agreements will be put in place with its near neighbors over the coming years.