Canada: Economic and Political Outline

Economic Overview

After declining due to global recession, Canada's GDP has rebounded with growth estimated at over 3% in 2010 due to the stimulus package, the recovery of foreign trade and the newfound confidence of Canadian households. The growth rate should slow down in 2011, reflecting among others the end of the stimulus measures and a lower household consumption, which are facing increased levels of debt.

After the beginnings of a recovery, the emphasis is now on structural reforms. The government's priority is to consolidate its budgetary position, which in some provinces the crisis has worsened to alarming proportions. Plans to cut spending have been developed. Health reform also figures at the forefront, as well as a reform of the system of unemployment benefits.

In fact, even though Canada is a rich country with a very good living standard, it now has to deal with a worrying growth of its unemployment rate, which was estimated at 8 % in 2010. 

Main Sectors of Industry

Accounting for almost two thirds of the GDP, the service sector dominates the Canadian economy. Its most dynamic areas are: telecommunications, tourism, Internet (almost 65% of Canadian households regularly use the Internet) and the aeronautical industry.

The agricultural sector represents a little more than 2% of the GDP and employs less than 2% of the population. Canada is one of the largest exporters of agricultural products in the world, wheat in particular. It produces 10% of the world's GMO harvests. Fishing is an important sector. Canada is one of the main producers of minerals, namely nickel, zinc and uranium. The country also has large reserves of oil and natural gas.

Canada has 6 strong sectors of primary industry: renewable energies (mainly wind), forestry sector, hydrogen and fuel cells, mines, metals and minerals, fishing, oil and gas. The manufacturing sector represents approximately a third of the GDP.

Source: World Bank - Last Available Data.

Indicator of Economic Freedom

Score:

80.8/100

Position:

Free

World Rank:

6/179

Regional Rank:

1/3

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

Sources of General Economic Information

Ministries

Treasury Board of Canada
Department of Finance Canada
Foreign Affairs and International Trade Canada (DFAIT)
Industry Canada
Agriculture and Agri-Food Canada (AAC)

Statistical Office

Statistics Canada

Central Bank

Bank of Canada

Stock Exchange

Montreal Stock Exchange
Canadian Stock Review
TSX Group - Toronto Stock Exchange

Other Useful Resources

Canada Revenue Agency
Government of Canada : Provinces and Territories

Main Online Newspapers

Ottawa business journal
Canadian Content
Le Devoir
On-line Canadian newspapers
Les Affaires
Canoe - Portal for information on news and entertainment

Economic Portals

Quebec social economy
Canadian Arboriginals Portal
Libraries of the UQAM
Canoe - Portal for information on news and entertainment

Political Outline

Type of State

Constitutional monarchy, parliamentary democracy and federation.

Executive Power

Queen Elizabeth II is the Head of State. She appoints the Governor General of the country for 5 years. The Governor General appoints the Prime Minister as well as the Ministry (however, this is chosen by the Prime Minister). The Prime Minister is the head of the government. He holds the executive power. The leader of the majority party or coalition in the House of Commons is automatically chosen to be Prime Minister. The Prime Minister and his Ministry stay in power as long as they have the support of the majority in the House of Commons.

Legislative Power

The legislative power in Canada is composed of a two-chamber federal parliament made up of: the Senate (upper house) whose members are appointed by the Governor General on the advice of the Prime Minister; the House of Commons (lower house), whose members are elected by universal suffrage. The Governor General calls a general election when the Prime Minister advises him to do so. Most legislative practices are derived from the British Parliament.

Main Political Parties

The four main parties in Canada are: the Conservative Party of Canada (CPC), the Liberal Party of Canada (LPC), the New Democratic Party (NDP), and the Bloc Québécois.

Current Political Leaders

Governor General: David Johnston (since October 2010)
Prime Minister: Stephen HARPER (since February 2006) – Conservative Party

Next Election Dates

House of Commons: January 2011

Indicator of Freedom of the Press

World Rank:

10/179

Evolution:

11 places up compared to 2010

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

Indicator of Political Freedom

Ranking:

Free

Political Freedom:

1/7

Civil Liberties:

1/7

Map of freedom 2010
Source: Freedom House