The economy of Canada is a highly developed market economy. It is the 9th largest GDP by nominal and 15th largest GDP by PPP in the world. As with other developed nations, the country’s economy is dominated by the service industry which employs about three quarters of Canadians. Canada has the third-highest total estimated value of natural resources, valued at Int$ 29.98 trillion in 2019.
It has the world’s third largest proven oil reserves and is the fourth largest exporter of crude oil. It is also the fifth largest exporter of natural gas. Canada is considered an “energy superpower” due to its abundant natural resources and a relatively small population of 38 million inhabitants, in relation to its land area.
Canada is perceived as one of the least corrupt countries in the world and is one of the world’s top ten trading nations, with a highly globalized economy. Canada historically ranks above the United States and most western European nations on The Heritage Foundation’s index of economic freedom, while experiencing a relatively low level of income disparity.
The country’s average household disposable income per capita is “well above” the OECD average. The Toronto Stock Exchange is the eighth-largest stock exchange in the world by market capitalization, listing over 1,500 companies with a combined market capitalization of over US$3 trillion.
In 2021, Canadian trade in goods and services reached CA$2.016 trillion. Canada’s exports totaled over CA$637 billion, while its imported goods were worth over CA$631 billion, of which approximately CA$391 billion originated from the United States, CA$216 billion from non-U.S. sources.
Canada is unusual among developed countries in the importance of the primary sector, with the logging and energy industries being two of Canada’s most important. Canada also has a sizable manufacturing sector, based in Central Canada, with the automobile industry and aircraft industry being especially important. With the world’s longest coastline, Canada has the 8th largest commercial fishing and seafood industry in the world. Canada is also one of the global leaders of the entertainment software industry.
It is a member of the APEC, G7, G20, OECD and WTO, and was formerly a member of NAFTA until the USMCA came into force in 2020. Canada is also part of several major international and intergovernmental institutions or groupings including the United Nations, NATO, the G7, the Group of Ten, the G20, the Organization for Economic Co-operation and Development (OECD), the World Trade Organization (WTO), the Commonwealth of Nations, the Arctic Council, the Organization internationale de la Francophonie, the Asia-Pacific Economic Cooperation forum, and the Organization of American States.
SMEs are a driving force in Canada’s economy. A total of 99.8% of all Canadian businesses are small- to medium-sized firms with less than 500 employees. In Canada, small businesses are categorized as firms with less than 100 paid employees and medium-sized businesses are categorized as firms with 100 to 499 paid employees.
As of December 2019, there were 1.23 million employer businesses in Canada. Of these, 1.2 million (97.9 percent) were small businesses, 22,905 (1.9 percent) were medium-sized businesses and 2,978 (0.2 percent) were large businesses.
Small-to medium-sized businesses contribute to approximately 38.4% of Canada’s gross domestic product (GDP).
More than half of Canada’s small employer businesses are concentrated in Ontario and Quebec (440,306 and 249,685, respectively).
Canadian Dollar (CAD)
Depends on location. Time Zones include:
Newfoundland Daylight Time (GMT-2:30);
Atlantic Daylight Time (GMT-3);
Eastern Daylight Time & Atlantic Standard Time (GMT-4);
Eastern Standard Time & Central Daylight Time (GMT-5);
Central Standard Time & Mountain Daylight Time (GMT-6);
Mountain Standard Time & Pacific Daylight Time (GMT-7)
January 1 – December 31
National Minimum Wage:
$15.50 an hour
Taxpayer Identification Numbers:
Social Insurance Number (SIN)
Business Numbers (BN)
Goods and Services Tax Number (Provincial)
Main trading partners:
United States, China, United Kingdom, Japan, Mexico, European Union and Japan.