Canada's economy: the essentials for the citizenship test
The economy takes up few pages in the Discover Canada guide (pp. 42 and 43, then in the presentation of the regions), but it comes up often in the questions. Here are the essentials, summed up from our study sheet 5.
Overview
- Canada is one of the world's 10 largest economies.
- It is a member of the G7, with the United States, Germany, the United Kingdom, Italy, France and Japan. The guide refers to the G8, which included Russia until 2014.
- Canadians enjoy one of the highest standards of living in the world, and trade drives economic growth.
The 3 main industry sectors
| Sector | Examples | To remember |
|---|---|---|
| Service industries | Transportation, education, health care, construction, banking, communications, retail, tourism, government | Over 75% of Canadian workers |
| Manufacturing | Paper, high technology, aerospace, cars, machinery, food, clothing | The United States is the biggest trading partner |
| Natural resources | Forestry, fishing, agriculture, mining, energy | A large share of exports |
Trade agreements
- 1988: Canada–U.S. Free Trade Agreement.
- 1994: North American Free Trade Agreement (NAFTA) with the United States and Mexico, replaced by CUSMA in 2020.
The partnership with the United States
Each country is the other's biggest trading partner, and more than three quarters of Canadian exports go to the United States. The border between the two countries is often described as the world's longest undefended border, and NORAD defends North American airspace.
Resources by region
| Region | Resources | Page |
|---|---|---|
| Atlantic | Fishing (lobster), offshore oil and gas, hydroelectricity (Labrador) | 46 |
| Quebec | Hydroelectricity (largest producer), pulp and paper, pharmaceuticals, aerospace | 47 |
| Ontario | Financial centre (Toronto), cars, vineyards (Niagara), farming | 48 |
| Saskatchewan | 40% of Canada's farmland; grains, oilseeds, uranium, potash | 48 |
| Alberta | Top oil and gas producer; oil sands; cattle ranching | 49 |
| British Columbia | Forestry, fishing, mining, wine (Okanagan) | 49 |
| Territories | Mining (gold, diamonds, copper, zinc, lead); oil and gas in development | 50 |
Social programs
- Old Age Security: dates back to 1927.
- Employment Insurance (formerly unemployment insurance): created in 1940.
- Canada Pension Plan and Quebec Pension Plan: since 1965.
- Canada Health Act: guarantees basic health care.
- Education is funded by the provinces and territories.
(See the guide, p. 24.)
Test yourself
Summary taken from our study sheet 5; see the Discover Canada guide, pp. 24, 42 and 43, and 46 to 51.