Canada is known for its dramatic landscapes, its laid-back culture, and its maple leaf-emblazoned flag. But few people realize the strength of its economy, which contributes billions of dollars to the global gross domestic product each year. Despite the effects of the COVID-19 pandemic on global markets, the Canadian economy has stayed strong and doesn’t show signs of slowing down any time soon.
The core of Canada’s economic productivity is its large amount of natural resources. Canada is the world’s second-largest producer of crude oil and exports millions of barrels of oil to the United States each day. In addition, Canada’s natural gas and hydroelectric industries are booming. Canada is the largest supplier of oil and gas to the U.S., accounting for over one third of all energy imports to the United States.
Canada also has an enviable manufacturing sector. The automobile industry is especially strong, with major automobile manufacturers such as Honda, Toyota, and Ford all having Canadian branches. Canada is also home to a thriving aerospace sector, with large companies in the business of aircraft parts and missiles.
Canada’s economic strengths don’t end with its natural resources and its industrial production. Canada has become a major hub of financial services. Four of the world’s largest banks, each ranked in the top 20 banks globally, are based in Canada. Canada is also the world’s sixth-largest producer of commercial insurance. Canada also has a robust capital markets sector, supporting many financial firms on the stock exchange.
In addition to its industrial and financial strengths, Canada is home to a strong technology sector. Companies such as BlackBerry, Shopify, and Hootsuite are based in Canada, and the nation is counted among the world’s top in the number of entrepreneurs and venture capitalists. Canadian software engineering and computer science companies are also highly rated in the world, making Canada a top destination for foreign businesses looking for the most advanced technology technology available.
The Canadian economy also has strong public policies and a forward-thinking government. Canada’s economic policies and regulations are seen as more business-friendly than many other nations in the G7 and have been increasing in favorability since the years leading up to the global recession of 2008-09. Canada’s economic policy is also inclusive of immigrants, who are often the first to apply for jobs and fill up entrepreneurial positions.
The Canadian economy is a strong and reliable performer in the international markets. The nation’s banking system is insulated from the risk factors of international financial markets, meaning the nation is rarely exposed to the largest fluctuations of global financial markets. It is this safe and steady nature of the economy, combined with its natural resources and its diversified base, which makes the Canadian economy a reliable one.
The stability of the Canadian economy means it is well-positioned for weathering out the current economic challenges of the pandemic. The nation is set to benefit from post-COVID economic growth, as the world begins to recover from its pandemic losses. Canadian jobs are growing, the Canadian dollar is strengthening, and the nation remains politically stable and financially strong. Despite a few bumps in the road, the Canadian economy is likely to remain a surprise powerhouse of the global economy.