Canada: Country Factfile

Overview Area 9,922,385 km2 Population density 3.4 people/km2 Currency Canadian dollar (C$ = 100 cents) Location Canada occupies virtually the entire northern half of the North American continent. Head of state HM Queen Elizabeth II represented by Governor-General David Johnston Head of government Stephen Harper (2006) Ruling party The Conservative Party leads the government. Political structure Canada is a federation of 13 provinces and territories, each of which exercises considerable degree of political autonomy. The Northwest Territories were divided in 1999 so as to create an Indian territory, Nunavut. Parliament consists of the House of Commons in Ottawa with 308 elected members from individual constituencies and the Senate which has 104 members appointed by the Prime Minister. A governor-general represents the monarch. Last elections Parliamentary elections were held in May 2011. The Conservative Party won 167 seats while the Liberal Party took 34 seats. The left-ofcentre New Democratic Party captured 102 seats, the Bloc Qubois took 4 seats and the Green Party won 1 seat. Political risk The division between eastern and western Canada is a long-standing one. To reduce the tension between provinces, the federal government has agreed to transfer C$41 billion to the provinces over the next ten years. Each province, however, will have to launch their own drug strategy, improve home care and bolster medical services. In addition, the provinces must account for how the money is spent. A financial crunch faces virtually all Canadian cities. With tax collection left to the federal government and the provinces, the cities have only limited means of raising revenue. As a result, urban infrastructure is deteriorating. Experts estimate that the cities need an additional C$60 billion. Voters in the northwestern part of Ontario want to leave the province and become part of Manitoba. They regard the distant provincial government as uninterested and hope to gain access to cheaper energy if they are part of Manitoba. Canada's policy on aboriginals is a frequent source of tension. Land claims, often involving natural resources, are the most common source of contention. International disputes Canada's trade with the USA amounts to over US$500 billion a year and trade disputes are common. Officials are concerned that American protectionism has grown since the recession and threaten retaliation. A free-trade agreement with the EU is under negotiation. Washington is also highly critical of Canada's lax border controls. Canada has several minor maritime boundary disputes with the USA and an uncontested dispute with Denmark over Hans Island sovereignty between Ellesmere Island and Greenland. Canada claims sovereignty over the entire Arctic archipelago but the USA has never recognised this claim. The Americans consider the Northwest Passage to be an international waterway. Main industries Agriculture employs just 2.2% of the workforce but the sector's exports provide an important boost to the economy. Output of corn, soya and poultry are all growing steadily but wheat production is stagnating. Firms are under pressure to improve productivity to maintain competitiveness but many are overburdened with debt. Gains in efficiency will be essential to cope with population ageing. The government will provide up to US$1 billion in loans for farmers over the next five years to ease credit restraints. Farm output recovered modestly in 2010 but was still below the levels reported for 2008. Manufacturing accounts for 10.9% of GDP, down from 14.5% in 2005. Output surged in the first quarter of 2011. Food manufacturers and motor vehicle producers are leading the turnaround. Car sales rose at a double-digit pace in the first quarter of 2011. Manufacturers are adding to their workforces at a steady rate. In the mineral sector, Canada is the world's largest producer of zinc and uranium and has substantial reserves of nickel, potash, cobalt, silver and gold. British

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Colombia's coal industry has made a dramatic comeback since China began to import coal in 2004. Altogether, the province has 25 billion tonnes of proven coal reserves. Flush with cash, Asian companies are investing heavily in Canada's mineral and energy resources. Chinese and South Korean companies are among the leaders. Economy The Canadian economy performed well for more than a decade. Cautious financial policies combined with a commodity boom enabled Canada to realise one of the strongest budget positions among industrialised countries. The pace of growth slowed in 2008 and the economy began to contract in the fourth quarter. Real GDP fell by 2.8% in 2009 but growth returned in 2010. Canada's recession was perhaps the worst since the 1930s but both demand for exports and domestic investment had begun to recover before the end of the year. In general, Canada weathered the recession better than most large economies. During the fourth quarter of 2010, Canada's economy was the fastest-growing of all G-7 countries. For several years, the federal government managed to reduce its debt while still allowing sizeable tax reductions. That strategy had to be abandoned in 2009 in order to help the struggling economy. In the future, Canadian enterprises will face stronger competition from rivals in emerging economies and higher security costs at the US border. Energy Canada's conventional crude oil reserves amount to 28.6 billion barrels. However, if Alberta's oil sands are included, crude oil reserves total 178.6 billion barrels. Based on the latter estimates, the country is second only to Saudi Arabia. The inclusion of oil sands in official reserves is controversial because these resources are much more difficult to extract and process than conventional crude oil. Nearly three-quarters of all planned investments in development of oil sands were deferred as a result of the recession but much of that has now restarted. Chinese firms have established a stronger presence in the extraction of oil sands in the past year. Although conventional oil production is falling, Canada's total oil production is increasing and the upward trend should continue through 2015. The oil sector has recently seen significant mergers and acquisitions, with US firms purchasing over US$35 billion in Canadian oil and gas assets. Canada also has 1.6 trillion cubic metres of natural gas. Most of this is exported to the USA through pipelines in Idaho, Montana, North Dakota and Minnesota. Statistical Summary 2005 Inflation (% change) Exchange rate (per US$) Lending rate GDP (% real growth) GDP (national currency millions) GDP (US$ millions) Population, mid-year ('000) Birth rate (per '000) Death rate (per '000) No. of households ('000) Total exports (US$ millions) Total imports (US$ millions) Tourism receipts (US$ millions) Tourism spending (US$ millions) Urban population ('000) Urban population (%) Population aged 0-14 (%) Population aged 15-64 (%) Population aged 65+ (%) Male population (%) Female population (%) Life expectancy male (years) Life expectancy female (years) Infant mortality (deaths per '000 live births) Adult literacy (%) 2.2 1.21 4.4 3.0 1,368,730.0 1,129,535.7 32,480.8 10.7 6.9 12,277.6 360,710.9 314,608.6 13,768.0 18,017.0 25,889.1 80.1 17.6 69.3 13.1 49.5 50.5 78.0 82.7 4.9 99.4 2006 2.0 1.13 5.8 2.8 1,439,290.0 1,268,808.6 32,812.8 10.9 7.1 12,437.5 388,233.6 350,148.4 14,689.0 20,620.0 26,184.9 80.2 17.3 69.5 13.2 49.5 50.5 78.4 83.0 4.8 99.5 2007 2.1 1.07 6.1 2.2 1,531,430.0 1,425,780.8 33,143.7 11.0 7.2 12,598.3 420,135.3 380,379.6 15,459.0 24,716.0 26,474.8 80.3 17.0 69.6 13.4 49.5 50.5 78.6 83.1 4.8 99.5 2008 2.4 1.07 4.7 0.5 1,602,470.0 1,501,772.4 33,481.2 11.0 7.2 12,755.0 456,443.8 408,816.3 15,267.0 27,306.0 26,774.7 80.4 16.8 69.6 13.6 49.5 50.5 78.8 83.3 4.7 99.6 2009 0.3 1.14 2.4 -2.5 1,527,670.0 1,339,744.8 33,809.4 10.9 7.2 12,910.9 316,568.6 321,203.0 15,516.8 28,854.2 27,081.0 80.5 16.6 69.6 13.8 49.5 50.5 78.9 83.4 4.7 99.7 2010 1.8 1.03 2.7 3.1 1,623,780.9 1,577,779.1 34,104.7 10.6 7.4 13,067.2 378,322.0 389,441.5 15,654.8 30,226.5 27,372.0 80.6 16.4 69.6 14.0 49.5 50.5 79.1 83.5 4.6 99.7

Imports and Exports Major export destinations North America 2010 Share (%) 74.9 Major import sources North America 2010 Share (%) 50.4

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Europe Asia-Pacific Latin America Africa and the Middle East Other countries

10.3 8.2 3.1 1.7 1.3

Asia Pacific Europe Latin America Africa and the Middle East Other countries

18.4 14.0 9.5 3.7 3.6

2012 Euromonitor International

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