Canada’s economy, despite being heavily dependent on U.S., has a number of features that make it very special. Canada is the second largest country in the world and also has a rich cultural diversity, which include two major groups: one anglophone and one francophone, concentrated almost exclusively in the region Quebec.

Canada is an active member of the international financial and trade institutions more important. In addition, the signing of Free Trade Agreement (NAFTA) in 1992 and its entry into force in 1994 resulted in a major trade agreement with the United States and Mexico, reflecting a growing integration with the U.S. economy.

Thus, in 2009 75% of Canadian exports went to the United States, and arrived there 51% of imports. For its part, Mexico was, during that year, the third supplier and the fifth customer. In addition, Canada also has free trade agreements, among others, with Peru, Colombia and Jordan.

However, crisis economic made that the Canadian economy into recession in late 2008, when they began to fall in private consumption, business investment and exports. However, since the third quarter of 2009 started the recovery. The economic improvements were also accompanied by an increase in household spending, public spending and construction investment. It has also recovered foreign trade.

The Canadian economy and territories

In a country as large, different areas have different economic guidelines:

In the Appalachian region, which includes the Atlantic provinces (New Brumswick, Nova Scotia, Newfoundland and Prince Edward Island), the predominant orientation is based on agriculture and fisheries, fishing grounds that once were important. This area is also notable mining, especially in Newfoundland and Nova Scotia, and in general, the exploitation of natural resources.

The region formed by the Lowlands, the Great Lakes and Saint Lawrence River area, which comprises the southern provinces of Quebec and Ontario is the most industrialized country, although it is also important to agriculture, the soil fertility. This is also the area that accounts for more than half the population of Canada.

Called the Canadian Shield area includes most of the provinces of Manitoba, Alberta and Saskatchewan. The region is found 75% of Canadian cropland. Manitoba and Alberta are covered by vast forests, while Saskatchewan is the main cereal. In addition, this region has significant deposits of minerals and petroleum.

Western Mountain region occupies most of British Columbia and Yukon. It is a heavily forested region and its economy is based mainly on the exploitation of natural resources, particularly from the forestry and mining. In addition, there is such a farm-related industries. The region of the Arctic Islands, northwest of the country and within the Arctic Circle, includes part of the Yukon and Northwest Territories. The main activities are developed here are mining, hunting and fishing.

The Canadian economy and sectoral distribution

The primary sector accounts for 6% of GDP, and particularly agricultural production comprises 2.1%. Canada is the leading exporter of canola, wheat and the second one of the most important of barley and oats. Mining accounts for 4.32% of GDP, making Canada one of the leading nations in this field. It is the world’s largest producer of potash, uranium and zinc, the second of asbestos, nickel and cadmium, and is among the top five in the production of, among others, aluminum, cobalt and copper. Canada is the eighth largest oil producer and has a very significant reserves, which are, in fact, the second worldwide. It also has significant reserves of natural gas, the second largest exporter.

The role of industry and the tertiary sector in the Canadian economy

The secondary sector accounts for 21% of GDP. Inside, the most important sector is manufacturing, which accounts for 20% of all goods manufactured in the country. Within this, are very important automobiles, electrical and electronic products, and chemicals.

However, despite its importance, since 2000 production has been somewhat erratic, and its contribution to GDP has been declining, mainly because the economic slowdown in the U.S., its main client, so that dependence extremely negative impact on manufacturing. Furthermore, the strengthening of the Canadian dollar was losing competitiveness to countries with lower production costs. The automotive sector is very important, and employs approximately half a million people. About 90% of the production is exported, the U.S. being the largest recipient.

The tertiary sector is of great importance in the Canadian economy, representing 73% of GDP. Within this sector, the financial services sub-sector has a lot of weight, about 4% of employment and 6% of GDP. This is a highly integrated subsector, comprising banks, credit unions credit for calls caisses populaires (Similar to Spanish savings banks), and other financial institutions of various kinds.

International trade and consumption in Canada

In regard to international trade between 2008 and 2009 fell due to the economic crisis. In particular, relations with the United States were the most resented, despite which the country remained its largest trading partner.

In regard specifically to the consumer, it is important to note that in Canada there are significant Regional differences That force to take on the challenge of responding to the tastes of some consumers who are very different depending on whether they are Francophone or Anglophone or even depending on their ethnicity.

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