The Canadian Economy at a Glance
Canada's economy is highly diversified, reflecting regional characteristics from coast to coast.
In the four Atlantic provinces, fishing and fish and shellfish processing are unsurprisingly major economic activities, despite the moratorium on cod fishing that led to the collapse of this industry in Newfoundland and Labrador in the 1990s (moratorium lifted in 2024). This province, which for many years was less developed than its Atlantic counterparts, has benefited from the exploitation of its offshore mineral, hydroelectric and hydrocarbon resources in recent years.
The federal government also launched an Atlantic Growth Strategy in 2016, targeting the food industry, clean energy and innovation, particularly in biosciences, aquaculture and ocean technologies.
Quebec's economy is driven by its abundance of natural resources. The province boasts vast forests, extractive industries, rich farmland, countless bodies of water and, above all, enormous hydroelectric potential.
Quebec also benefits from niches of excellence such as marine resources, science and technology in the Bas-Saint-Laurent, AgroBoréal in Saguenay-Lac-Saint-Jean, environmental bio-industries in the Eastern Townships and four-season resort tourism in the Laurentians. Some regions have also developed specialized skills whose renown extends beyond the province's borders: precious mineral extraction in Abitibi; video games, multimedia, artificial intelligence, aerospace and film production in Montreal; aluminum in the Saguenay, and so on. It's also worth noting that Montreal is Canada's2nd-largest metropolis and the country's2nd-largest economic center.
As Canada's most populous province, Ontario is the country's economic heartland. It's North America's largest IT hub after Silicon Valley, and home to the continent's largest manufacturing sectors. The automotive industry comes out on top, including the development of intelligent transportation thanks to the province's Advanced Manufacturing Supercluster. Ontario is also home to a number of cleantech companies and the country's largest financial services industry, not to mention the federal government's presence in Ottawa, which attracts many international companies and organizations. There are, of course, many other key sectors, such as aerospace, industrial automation and robotics, forestry, life sciences (including pharmaceuticals, medical devices and biotech), and so on.
West of Ontario, Alberta's oil sands, particularly in the Fort McMurray region, and Saskatchewan's uranium, potash and shale oil development cannot be ignored. The Great Interior Plains, covering a large part of Manitoba, Saskatchewan and Alberta, represent one of the world's major agricultural regions, particularly for wheat and cattle. As for British Columbia, in addition to its many natural resources (fisheries, forestry, etc.), the province benefits from a solid real estate sector, boosted by wealthy Asian investors. Its metropolis, Vancouver, is undoubtedly a major transportation hub on the Pacific Ocean, and Calgary, Alberta's largest city, is another of the country's major financial centers.
Then there's Canada's North and its three territories, which are highly renowned for mining (diamonds, gold, iron ore, etc.). And with the ice pack and ice sheet set to melt, Canada's North has become a major geostrategic challenge in terms of the Northwest Passage - coveted by the United States and Europe as a shortcut to East Asia - and immense hydrocarbon reserves.
International relations
Since the end of Stephen Harper's reign (Conservative Party) and the election of Justin Trudeau (Liberal Party) in 2015, Canada is once again doing well internationally, even if all is not perfect. We recall Trudeau's famous line at the Paris Climate Conference (COP21) in 2015: " Canada is back, my friends! We take this opportunity to highlight a return to normal in Canada-US relations following the election of Democrat Joe Biden to the White House in 2020, a well-deserved respite after the Trump earthquake. It remains to be seen who will win the Harris-Trump duel in the American elections of 2024.
Canada has a strong presence on the international stage, and is a member of numerous organizations such as the G7, the G20, the OECD, the WTO, the Organisation internationale de la Francophonie, the UN, NATO and UNESCO. There are also trade agreements with, for example, ten Asia-Pacific countries (PTPGP), the USA and Mexico (ACEUM - formerly NAFTA) and the EU (CETA), as well as multilateral aid partnerships such as the African Development Bank, the Commonwealth, the WHO and the World Food Programme. And the list of international agreements and partnerships goes on (for more info: international.gc.ca/world-monde).
It's worth noting that Quebec has its own network of diplomatic representations abroad, with more than thirty offices (general delegation, delegation, office or antenna) present in some twenty countries. Reporting to the Ministère des Relations Internationales et de la Francophonie, this network covers the economy, education, culture, immigration and public affairs.
A top tourist destination
Tourism was booming in Canada... until the pandemic hit the country hard in March 2020. That said, since the global recovery in tourism, Canada has been doing well, and Destination Canada, the national tourism marketing organization, expects the influx of visitors from around the world to return to pre-pandemic levels by 2026 at the latest. It has to be said that the weakness of the Canadian dollar is playing a significant role, encouraging Canadians to spend their vacations in the country and attracting international visitors for whom the exchange rate is more than attractive. Destination Canada specifically targets ten countries in its promotions: Australia, China, France, Germany, India, Japan, Mexico, South Korea, the United Kingdom and the United States.
In 2022, nearly 625,000 jobs were directly supported by tourism, not to mention jobs in industries dependent on tourism, for a total of 1.9 million jobs, which corresponds to one in every ten jobs in the country. There were also some 218,000 tourism establishments in Canada, and tourism contributed almost $38 billion to the gross domestic product, with revenues of almost $94 billion for businesses.
While Quebec and Ontario account for a large share of the tourism market, visitors also flock to the Rocky Mountains and the country's west coast. Canada boasts thirteen international airports, including Toronto Pearson, the2nd busiest in North America, and over a hundred land border crossings with its American neighbor.
Political and social issues
After almost a decade of Conservative rule, Justin Trudeau's Liberal Party has held the reins of the country since 2015. His policies are the antithesis of his predecessor's, particularly when it comes to environmental protection, relations with Aboriginals and various cultural minorities, higher (albeit exaggerated) immigration thresholds and the growing population of French-speaking minority communities. The country also faces other challenges, such as rising crime rates in major cities, improved living conditions in Canada's North, and a lack of affordable housing. With its wealth of natural resources, Canada must also maintain its role as a major energy producer, without harming future generations, and thus ensure the sustainable development of the energy industry. And good international relations are essential, especially since the country has finally rediscovered cordial relations with its neighbor and great ally, the United States, since the election of Joe Biden in 2020. But American protectionism persists, despite the arrival of the Democrats in the White House, which could put a damper on trade between the two countries. We must also keep an eye on other issues affecting Canada - as almost everywhere else - such as the drastic rise in the cost of living, the influx of migrants, new technologies (artificial intelligence, big data, crypto-currencies, etc.), anti-feminism, sexual harassment, systemic racism, tax havens, voting reform, fake news and the phenomenon of conspiracy, the transformation of cities and gentrification... In short, the challenges are many, especially as the Trudeau government seems to be on its last lap and the shadow of a Trump return to the White House seems possible. To be continued...
