The Canadian Economy at a Glance
Canada's economy is highly diversified, reflecting regional characteristics from coast to coast.
In the four Atlantic provinces, fishing and fish and shellfish processing are unsurprisingly major economic activities, despite the cod moratorium that led to the collapse of the industry in Newfoundland and Labrador in the 1990s. This province, which was long less developed than its Atlantic counterparts, has benefited from the exploitation of its offshore mineral, hydroelectric and hydrocarbon resources in recent years.
The federal government also launched an Atlantic Growth Strategy in 2016, targeting the food industry, clean energy and innovation, particularly in biosciences, aquaculture and ocean technologies.
Quebec's economy is driven by its abundance of natural resources. The province boasts vast forests, extractive industries, rich farmland, countless bodies of water and, above all, enormous hydroelectric potential.
Quebec also benefits from niches of excellence such as marine resources, science and technology in the Bas-Saint-Laurent, AgroBoréal in Saguenay-Lac-Saint-Jean, environmental bio-industries in the Eastern Townships and four-season resort tourism in the Laurentians. Some regions have also developed specialized skills whose renown extends beyond the province's borders: precious mineral extraction in Abitibi; video games, multimedia, artificial intelligence, aerospace and film production in Montreal; aluminum in the Saguenay, and so on. It's also worth noting that Montreal is Canada's2nd-largest metropolis and the country's2nd-largest economic center.
AsCanada's most populous province, Ontario is the country's economic heartland. It's North America's largest IT hub after Silicon Valley, and home to the continent's largest manufacturing sectors. The automotive industry comes out on top, including the development of intelligent transportation thanks to the province's Advanced Manufacturing Supercluster. Ontario is also home to a number of cleantech companies and the country's largest financial services industry, not to mention the federal government's presence in Ottawa, which attracts many international companies and organizations. There are, of course, many other key sectors, such as aerospace, industrial automation and robotics, forestry, life sciences (including pharmaceuticals, medical devices and biotech), and so on.
West of Ontario, Alberta's oil sands, particularly in the Fort McMurray region, and Saskatchewan's uranium, potash and shale oil development cannot be ignored. The Great Interior Plains, covering a large part of Manitoba, Saskatchewan and Alberta, represent one of the world's major agricultural regions, particularly for wheat and cattle. As for British Columbia, in addition to its many natural resources (fisheries, forestry, etc.), the province benefits from a solid real estate sector, boosted by wealthy Asian investors. Its metropolis, Vancouver, is undoubtedly a major transportation hub on the Pacific Ocean, and Calgary, Alberta's largest city, is another of the country's major financial centers.
Then there's Canada's North and its three territories, which are highly renowned for mining (diamonds, gold, iron ore, etc.). And with the ice pack and ice sheet set to melt, Canada's North has become a major geostrategic challenge in terms of the Northwest Passage - coveted by the United States and Europe as a shortcut to East Asia - and immense hydrocarbon reserves.
International relations
Since the end of Stephen Harper's (Conservative Party) reign and the election of Justin Trudeau (Liberal Party) in 2015, Canada is once again doing well internationally, even if everything is not perfect. We remember Trudeau's famous phrase during the Paris Climate Conference (COP21) in 2015: " Canada is back, my friends! We would like to take this opportunity to highlight the return to normal in Canada-U.S. relations following the election of Democrat Joe Biden to the White House in 2020, a well-deserved respite after the Trump earthquake.
Canada has a strong presence on the international scene and is a member of numerous organizations such as the G7, the G20, the OECD, the WTO, the Organisation internationale de la Francophonie, the UN, NATO and UNESCO. In addition, there are trade agreements with, for example, a dozen Asia-Pacific countries (PTPGP), the United States and Mexico (ACEUM - formerly NAFTA) and the EU (CETA), as well as partnerships for multilateral aid such as the African Development Bank, the Commonwealth, the WHO and the World Food Programme. And the list of international agreements and partnerships is still long (for more info: international.gc.ca/world-world).
Note that Quebec has its own network of diplomatic representations abroad with more than thirty representations (general delegation, delegation, office or antenna) present in 18 countries. Reporting to the Ministère des Relations Internationales et de la Francophonie, this network covers the economy, education, culture, immigration and public affairs.
A top tourist destination
Tourism was on a roll in Canada... until the pandemic hit the country full force in March 2020. Just before that, 2019 set a3rd record in a row with some 22.1 million visitors, a million more than the previous year. It was also the first time the country had broken the 22 million barrier. It has to be said that the weakness of the Canadian dollar is playing a significant role, encouraging Canadians to spend their vacations in the country and attracting international visitors, for whom the exchange rate is more than attractive.
Destination Canada, the national tourism marketing organization, specifically targeted ten or so countries in its promotions: Australia, China, France, Germany, India, Japan, Mexico, South Korea, the United Kingdom and the United States.
Tourism directly supports some 750,000 jobs. A further 1.9 million are employed in tourism-dependent industries, representing one in every ten jobs in the country. There are also some 232,000 tourism establishments in Canada. In 2019, tourism's share of GDP was 2.03%, contributing nearly $43.5 billion to gross domestic product, and tourism receipts were in the order of $105 billion.
While Quebec and Ontario capture a large share of the tourism market, visitors are also flocking to the Rockies and the country's west coast. Canada boasts thirteen international airports, including Toronto Pearson, the2nd busiest in North America, and over a hundred land border crossings with its American neighbor.
Political and social issues
After almost a decade of Conservative rule, Justin Trudeau's Liberal Party has held the reins of the country since 2015. His policies are the antithesis of his predecessor's, particularly when it comes to environmental protection, relations with Aboriginals and various cultural minorities, raising immigration thresholds and increasing the population of French-speaking minority communities. The country also faces other challenges, such as rising crime rates in major cities, improved living conditions in Canada's North, and a growing labor shortage due to an aging population and a slowdown in immigration as a result of Covid-19. Backed by its natural resources, Canada must also maintain its role as a major energy producer, without harming future generations, and thus ensure the sustainable development of the energy industry. And good international relations are essential, especially as the country is finally regaining cordial relations with its neighbor and great ally, the United States, since the election of Joe Biden in 2020. But American protectionism persists, despite the arrival of the Democrats in the White House, which could put a damper on trade between the two countries. We must also keep an eye on other issues affecting Canada - as almost everywhere else - such as new technologies (artificial intelligence, big data, crypto-currencies, etc.), anti-feminism, sexual harassment, systemic racism, tax havens, voting reform, fake news and conspiracy theories, urban transformation and gentrification... In short, the challenges are many, especially with the pandemic affecting several sectors of the Canadian economy, such as the hotel and restaurant industry, tourism and the performing arts.
