Canada’s Economy

Canada has one of the world's largest and most diversified economies. We are a trading nation: exports represent about two-thirds of GDP, with the United States as our largest trading partner by far.

Three main types of industry

• Service industries — retail, education, health care, construction, finance, communications, transportation, government, and tourism. Roughly three out of four Canadians work in services.
• Manufacturing industries — paper, processed food, vehicles, technology, aerospace, clothing. Concentrated mainly in Quebec and Ontario, where most Canadian factories operate.
• Natural-resource industries — forestry, mining, fishing, energy, and agriculture. These were the historic foundation of the Canadian economy and remain important — especially in the West and the North.

Trade with the world

• Canada-United States-Mexico Agreement (CUSMA) — replaced NAFTA in 2020 and governs trade with Canada's North American partners.
• Comprehensive Economic and Trade Agreement (CETA) — opens trade with the European Union.
• CPTPP — connects Canada to Japan, Australia, Vietnam, and other Asia-Pacific economies.
• Canada is also a founding member of the World Trade Organization (WTO) and a member of the G7, G20, and OECD.

Banking and finance

Canada's banking system was ranked among the most stable in the world during and after the 2008 global financial crisis. The Bank of Canada, established in 1934, sets monetary policy and issues the Canadian dollar. Canadian currency carries the image of the reigning Sovereign on the obverse.

Innovation

Canadians have invented: - The telephone (Alexander Graham Bell, 1876) - Insulin (Banting, Best, and Macleod, 1922) — saving the lives of millions of diabetics - The pacemaker (John Hopps, 1950) - The CANDU nuclear reactor - The Canadarm robotic arm used on the Space Shuttle and the International Space Station - IMAX film technology (Graeme Ferguson, Roman Kroitor, Robert Kerr, William Shaw)

Working in Canada

The federal minimum wage applies to workers in federally regulated industries; provinces set their own minimums. Employment standards law guarantees vacation, statutory holidays, parental leave, and protection against discrimination. Employment Insurance provides temporary income for people who lose their jobs through no fault of their own.