Canada Economy

Canada Economy

Canada, a member of the G8, is an economically highly developed country, which, moreover, has enormous natural and energy resources. In the period after 1945, manufacturing (automotive, heavy and food industries — primarily in Ontario and Quebec) developed rapidly, leaving the raw materials sector far behind.

Canada’s largest trading partner is the United States, which accounts for more than 85% of Canadian exports and 65% of imports. After the creation of the NAFTA free trade zone  (which also includes Mexico) in 1994,  both countries were even more closely connected economically. Nevertheless, the conclusion of this agreement has a shadow side: the Canadian economy is now even more dependent on fluctuations in the US.

In the valley of the St. Lawrence River and on the banks of the Great Lakes, they are mainly engaged in vegetable growing, dairy farming, poultry farming and feed production. Grapes are even grown in the Niagara region and southeast of Quebec, Prince Edward Island is considered a potato island, and the Annapolis Valley in Nova Scotia supplies the whole country with fruit.

Forestry is the basis for the production of pulp, paper, furniture lumber. Ontario and Quebec are the main suppliers of timber, while the Canadian forestry industry produces about 250 million m3 of wood per year directly or indirectly, employing approximately 750 thousand people. A third of all newsprint in the world comes from Canadian forests.

The waters off the Atlantic coast of the country are among the richest fish areas in the world. The whole province of Newfoundland is completely dependent on fishing. When the government of Canada in 1992 declared a complete ban on cod fishing to save its population, 25,000 New Fowl residents were unemployed.

After the overthrow of «Her Majesty the cod» on the island and other Atlantic provinces, they switched to lobster and mollusk fishing, and seal hunting also spread to the displeasure of animal defenders, although the government reduced quotas for their shooting in 2007.

Other economic hopes are associated with large reserves of oil in the Atlantic, the development of which will begin shortly on the largest drilling platform in the world, as well as with the discovered in 1994 ore field on Labrador.

The deposit off the coast of the Gulf of Woixie is the last in a long series of discoveries: the ore reserves of minerals (gold, copper, nickel, silver) discovered in the Canadian Shield have made the country the third destination of the world’s mining country. Thanks to the powerful hydropower plants in Quebec and PA Labrador, Canada is not dependent on energy imports.