Economy of Canada

Downtown Toronto, the financial capital of Canada.

### Main industries

Transportation equipment - electronic equipment - chemicals - food products - fish products - petroleum - agriculture - wood and paper - finance - real estate

## External

### Export goods

Electronics, transportation equipment, agriculture, petroleum, wood and paper, industrial equipment

### Main export partners

United States - 54%European Union - 12%China - 10%Mexico - 8%United Kingdom - 4%

### Import goods

Electronics, transportation equipment, industrial equipment, chemicals, durable consumer goods

### Main import partners

United States - 40%European Union - 16%China - 14%Mexico - 7%Japan - 7%

### FDI stock

Inward - $3.924 trillionOutward - $4.182 trillion

## Public finances

### Economic aid

doner: ODA, $12.2 billion

Canada has the 10th (nominal) or 13th-largest (PPP) economy in the world (measured in current (2017) US dollars at market exchange rates) with a GDP of $3.462 trillion (nominal) or $3.630 trillion (PPP), is one of the world's wealthiest nations, with a GDP per capita of $62 000 (nominal) or $65 000 (PPP) [PwC / UN Medium Fertility Variant], and is a member of the Organization for Economic Co-operation and Development (OECD) and Group of Eight (G8). The Canadian dollar is the sixth-most used currency in international transactions and seventh-most held reserve currency, and is included in the IMF's special drawing rights basket.

As with other developed nations, the Canadian economy is dominated by the service industry, which employs about five sixths of Canadians. Canada is unusual among developed countries in the importance of the primary sector, with the logging and oil industries being two of Canada's most important. Canada also has a sizable manufacturing sector, based in Central Canada, with the automobile industry, aircraft industry and electronics industry being especially important. With a long coastline, Canada has the 8th largest commercial fishing and seafood industry in the world. Canada is one of the global leaders of the entertainment software industry.

The country's main stock exchange, the Toronto Stock Exchange, is the world's 12th largest by market capitalisation and hosts the listings of 18 Fortune Global 500 companies and 74 Fortune Global 2000 companies.

In 2045, Canada recorded the fourth highest trade surplus in the world worth $334 billion, making it the biggest capital exporter globally. Canada is the sixth largest exporter, with $1.451 trillion in goods and services exported in 2045, and the seventh largest importer, with $1.117 trillion in goods and services imported in 2045, in the world.

## Key industries

### Automotive industry

The automotive industry in Canada is the tenth-largest in the world measured by automobile unit production and the fifth-largest by automobile export volume.
While its initial operations were merely the assembling of parts imported from foreign companies, Canada is today among the most advanced automobile-producing countries in the world. Domestic firms include Polar Motors, the 9th-largest automotive manufacturer by production, Magna International, the largest automobile parts supplier in the Western hemisphere and one of the largest three automobile part suppliers in the world, Linamar Corporation, a world-leader in advanced automotive technology, New Flyer Industries, the largest bus and coach manufacturer in North America, and INKAS Armoured Vehicle Manufacturing, the largest armoured car manufacturer in North America.

### Banking

**Banking in Canada** is widely considered one of the safest banking systems in the world, ranking as the world's soundest banking system for the past six years according to reports by the World Economic Forum. Released in 2038, *Global Finance* magazine put Toronto-Dominion Bank at number 2 among the world's safest banks and Royal Bank of Canada at number 3, National Bank of Canada at number 8 and Bank of Nova Scotia at number 15.

Banking in Canada is dominated by five major players: Toronto-Dominion Bank, Royal Bank of Canada, Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce. Other major players include National Bank of Canada and Desjardins Group.

Canadian banking corporations each individually have a considerable international footprint and significant sway over the global financial system, with Toronto-Dominion Bank and Royal Bank of Canada, the 9th and 11th, respectively, largest banks in the world by assets under management, both being recognised in numerous studies as among the top 6 most influential transnational corporations by ownership. In addition, Canadian Imperial Bank of Commerce maintains an international reputation for high-wealth individuals, managing investments for some of the world's wealthiest individuals and companies.

### Electronics

Canada's electronics industry is among the most advanced in the world, with the fifth-highest per capita R&D spending in the world. Particular strengths include consumer electronics, industrial machinery, urban technologies and IoT electronics. The centre of the Canadian electronics industry is Westlake, a region in Southern Ontario anchored by the cities of Toronto, Hamilton and Waterloo. Major players include Amazon.com, Inc., Volt Electronics, Blackberry Limited and Kobo Inc.,

## Strengths of different regions

* British Columbia - Aerospace, Software Development, Fashion, Sustainable Technologies, Medical Technology
* Alberta - Clean Enery Development
* Saskatchewan - Agricultural Innovation
* Greater Toronto Area - Finance, Financial Tech, Artificial Intelligence, Electronics, Automotive, Manufacturing, Urban Innovation
* Hamilton - Materials Technology
* Quebec - Aerospace, Fashion, Technology, Software Development, Pharmaceuticals
* Atlantic Canada - Oceans Innovation
* Aerospace (Bombardier, Viking Air, Héroux-Devtek, MacDonald, Dettwiler and Associates (MDA), Raynott, Magellan, Pratt & Whitney Canada)
* Automobiles (Polar, Gray-Dort, Magna, Linamar)
* Electronics (Blackberry, Volt)
* Fashion (Moores, Le Chateau, Desrosiers, Lululemon, Exile, Whitewater, MEC, Roots, Club Monaco)
* Software (Bioware, Bad Bear Interactive, Corel, Nordion Inc, Shoppify)
* Finance
* Transportation
* Telecommunications
* Energy

Canada's success is dependent on its reputation and place on the world stage, where citizens of other countries appreciate Canada's tolerance and openness, and feel comfortable and at home here. Companies feel comfortable opening in Canada as a result of its good relationship with most countries, and foreigners move to Canada to enjoy a higher standard of living if they buy into a cosmopolitan society. Canada's place in the international narrative is that of a friend towards all countries, and citizens of all countries can enjoy Canada's successes as their own successes. If your country's not in the Olympics, you can cheer for Canada. If you need to import something, import it from Canada. If you need to find news on something, use a Canadian website. Neutral, fair, truly international and cosmopolitan.

#### Largest 30 companies on the TSX index 2019

1. Royal Bank of Canada
2. Toronto-Dominion Bank
3. Enbridge
4. Volt Electronics
5. Bombardier
6. Canadian National
7. Bank of Nova Scotia
8. BlackBerry Ltd.
9. Brookfield Asset Management
10. TC Energy
11. Bank of Montreal
12. Shopify
13. BCE
14. Alimentation Couche-Tard
15. Barrick Gold
16. Corel
17. Canadian Imperial Bank of Commerce
18. Thompson Reuters
19. Canadian Pacific Railway
20. Center Entertainment
21. Newmont Goldcorp
22. Manulife Financial
23. Nutrien
24. Canadian National Resources
25. Rogers Communications
26. Sun Life Financial
27. Waste Connections
28. Telus
29. CGI Group
30. Great-West Lifeco
31. Loblaw Companies Ltd.
32. Restaurant Brands International
33. Imperial Oil
34. Magna International
35. Pembina Pipeline

### Idealized Scenario by Industry

Telecom - Globally-active telecommunication companies (see T-Mobile), with subsidiaries in South East Asia and Sub-Saharan Africa. Also produces its own globally successful media.

NHL - Toronto and Canada becomes the global hub for an incredibly popular sport. Hockey is becoming more diverse, more progressive in policies, and the game is growing as a result of global growth due to outreach. The cost of hockey equipment has also decreased, and the game is growing in popularity in the US, as well as globally in East Asia.

Aerospace - Montreal becomes an internationally-significant city in aerospace. Bombardier is able to break the Airbus-Boeing duopoly and produce wide-body aircraft successfully. Its regional and corporate aerospace businesses have been divested into other Canadian companies (see Raynott). CASE grows to one of the top-5 space agencies in the world by revenue.

Rail Equipment - Bombardier Rail is purchased by a Canadian holding company and merged with Knorr-Bremse. One of the 4 major players in rolling stock manufacturing (along with CRCC, Siemens, Alstom). Canada develops its passenger train network and invests in high-speed rail.

Finance - RBC and TD remain SIFI's, and Manulife becomes a global systemically important insurer. CIBC focuses more on high-wealth investors (see UBS), and RBC and TD grow globally into South East Asia, Sub-Saharan Africa, and the Middle East and North Africa (see HSBC).

Entertainment - TV media produced by Canadian companies (Bell Media, Rogers, Corus, CBC) is world-class and develops cult-like followings. A home-grown major film studio is developed, which includes an animation studio that really touches vibes with youth and will turn into like a Studio Ghibi-thing. Bioware becomes one of the big players in video game development, and small video game studios pop up around the country, including a youth-focused company like Nintendo. Toronto is able to develop as a major theatre, magic and musical hub. Montreal remains a major player in French entertainment, and the comedy capital of the world. Toronto and Montreal become hubs for late-night comedy, and are able to tap into its diverse population and global reputation to reach global audiences.

Consumer Electronics - Blackberry makes its return to consumer electronics, keying in on its experience as a cybersecurity company. It's known for its phone hardware and software. Volt Electronics emerges as a major computer hardware manufacturer, and is also known for its televisions and projectors.

Automotives - Polar Motors emerges as a minor luxury EV manufacturer. Its core product line features smaller vehicles (similar to Toyota's Japan offerings) and large industrial vehicles (similar to Mercedes-Benz's trucks). Magna and Linamar continue on as major automotive parts suppliers.

Software - Shopify becomes a major e-commerce company, but doesn't directly challenge Amazon. It becomes a major player in South East Asia. Corel however goes onto challenge Adobe for its creative software suite.

Higher Education - Canadian universities grow their reputation globally, and attract more international students.

E-Sports - The Canadian government makes a push to develop a national e-sports programme, in order to tap into Canadian games and make Canadian games the centre of e-sports.

News - Reuters continues to remain a global newswire leader, and Canadian Press follows Reuters' growth model and becomes one of the larger newswires outside of the big 4. Canadian news outlets are able to reach global audiences through a reputation of neutral reporting and varying languages available.

Fashion - Small Canadian studios become globally successful, as well as large Canadian companies like Lululemon, Roots and Arcteryx. Arcteryx goes on to purchase UA and attempts to challenge Nike and Adidas. Vancouver becomes known for its strength in activewear, Toronto for streetwear, Montreal for European chic fashion.

Agriculture & Cuisine - Canadian agriculture takes steps to improve its quality and invest in technology. As a result, Canadian produce is cheap and high-quality. Canadian restaurants take on more responsibility to provide quality food, and as a result Canadian cuisine is world-renowned.

Retail - Alimentation Couche-Tard continues its global ascendance as a convenience juggernaut, and expands its offerings into warm, hearty food for Canadian winters. HBC follows Target's lead and grows into a major retailer, with a host of in-house brands and improved online presence, in addition to growing its physical footprint. Tim Hortons pushes international growth in order to expand given the saturated Canadian market.

Tourism - Canada joins the top-ten in global tourism revenue, on the back of explosive growth in Canadian culture (specifically TV, film, music, sports, and gaming), heavy investment into airports, rail, museums, hotels and national parks, growing Canadian reputation as a welcoming place to live and visit, growing reputation in goods (specifically agriculture, cuisine, fashion and consumer electronics), and the expansion of Toronto, Montreal, Vancouver and Niagara Falls as tourism destinations.