Canada is a country in North America that covers over 9.98 million square kilometers. It has three territories and ten provinces. Each of these is made up of a small portion of the country’s total area, extending from the Pacific Ocean to the Arctic Ocean.
Nominal GDP
GDP is the sum total of all goods and services produced over a period of time. It is one way of measuring an economy’s overall health. Several factors affect this measure. The value of goods and services produced, the speed of inflation, and the cost of living are all considered.
There are two primary approaches to calculating GDP. The first is the income approach. This method counts the income that a nation earns, including tax revenue, wages, and subsidies on products. In addition, the amount spent by a nation on the final goods and services it produces is also considered.
The second approach is the expenditure approach. This measure measures the flow of money and capital assets within the country’s economy. Investment spending includes the changes made to inventories by businesses. Also, this approach excludes transfer payments.
Both methods can be useful. However, the real GDP is generally regarded as the best overall measure of an economy’s performance. Real GDP is calculated by subtracting the effects of inflation from the prices of output.
The most common price index used in GDP calculations is the consumer price index. This indicator tracks the average price level of goods and services throughout the economy.
Another measure of GDP is the GDP deflator. This indicator is not as commonly used as the consumer price index, but it can be a good indication of the actual price of output over time. For example, a 1% increase in prices would be equated to a 1.01 GDP deflator.
The list of countries by nominal GDP per capita is not to be confused with the list of countries by PPP (Purchasing Power Parity) per capita. Although the latter takes into account exchange rates and the cost of living, it is not as exact as the former.
PPP GDP
The PPP GDP is an estimated measure of the value of all goods and services produced in a country. It is calculated based on the official exchange rate of a particular nation. This measure is used to give a more accurate picture of a country’s income.
Canada’s GDP is one of the largest in the world. Although it is relatively small compared to the U.S., it is also a highly diversified economy. Several natural resource industries play a major role in the country’s economy, including mining and oil.
Another large part of the Canadian economy comes from international trade. In 2018, Canada’s exports were CA$637 billion, while its imports totalled CA$391 billion. A huge share of this imports came from the U.S., but the country does have preferential trade agreements in place with countries across the globe.
According to the International Monetary Fund, Canada’s share of global GDP will drop by 0.1 percentage points between 2022 and 2027. Among the reasons behind this drop is the growing share of the service sector in the economy.
The health care industry has grown quickly in recent years. The industry accounts for a large portion of the economy, but it remains under government influence.
Manufacturing, which includes the pulp and paper sector, also plays a large role in Canada’s economy. In 2017, manufacturing accounted for 10% of the country’s GDP.
Canada’s economic growth has slowed over the past five years. However, it appears that the economy will resume its growth in 2021.
For comparison purposes, it is worth noting that the United States’ PPP GDP was 11 times larger than Canada’s. Purchasing power parity is a measure of the value of all final goods and services produced in a country, ignoring depreciation of fabricated assets.
Saskatchewan’s growth rate
Saskatchewan’s growth rate exceeded 2.5% in 2007. This was driven by favorable weather conditions, and the influx of new investment. The province has been one of the fastest growing provinces in Canada for the past decade.
The labour market remained relatively strong. The unemployment rate was at 5.1 per cent. It was a full point lower than last year. The province has also seen a significant increase in the number of people working in the labour force. Statistics Canada reported that there were more people employed in Saskatchewan than at any other time in the province’s history.
In the past five years, Saskatchewan’s population has risen 3.1 per cent. That’s just behind the national growth rate of 5.2 per cent.
The economy in Saskatchewan is highly dependent on international trade. The agricultural sector contributes a major share of the provincial GDP. Agricultural output is expected to continue to grow over the next few years.
Diversification has been a priority in the province. Many new food processing plants, and irrigation projects, are adding vital new layers to the economy.
Saskatchewan is home to about a million people. Of these, almost 35 percent live in rural areas. There are 13 cities in the province. Another 19 per cent live in towns and smaller rural villages.
Saskatchewan’s average per capita income is three times the global average. That makes it one of the affluent provinces in the world.
The province is on track to record robust expansion this year. TD Bank has projected that Saskatchewan’s real GDP will grow by 0.7 per cent this year.
Saskatchewan’s employment reached a record high for eight straight months. Employment increased by 11,100 jobs from July to October.
Comparison with other jurisdictions in Canada
If you’re looking to compare Canada’s per capita GDP with those of other countries, then the OECD has some interesting insights. They predict that real per capita GDP growth over the next 20 years will be weak.
As a result, the average quality of life in Canada is set to deteriorate. This is due to low productivity and a skewed income distribution. It is also expected that Canada’s economy will contract 5.4 percent by the end of 2020. The country will be ranked dead last in the OECD’s per capita GDP rankings in 2030.
On the flip side, the OECD’s new report claims that Canadian living standards will decline compared to those of other advanced economies. Although the OECD’s per capita GDP ranking was not entirely inaccurate, it was the omission of a measurable tailwind that could boost the real income of young Canadians.
As for the per capita gizmo, the OECD’s measure gives weight to a square root of the square of the family size. For instance, a family of four is given a weight of five points.
Other metrics include social security, a national health insurance program and a robust financial sector. All of these are impressive, but the real question is whether the government is doing enough to address the challenges of meeting public demands for improved health care, the environment and the financial sector.
In addition to the above-mentioned gizmo, Canada’s other notable accomplishments include its extensive network of preferential trade agreements, its low unemployment rate and its high GDP per capita. However, Canada’s economic growth has stalled over the past few years. That’s a major problem, and a large part of the reason for the OECD’s findings.
Economic complexity
Economic complexity is a measure of a country’s innovation potential. A high complexity outlook means that the country’s existing capabilities are well-suited to produce a range of complex products. The complexity of a product’s production process is determined by its connectedness to other products.
The economic complexity of a country is calculated by measuring the diversity of its exports. Rankings take into account countries that have a population of at least one million. Only exports of at least $1 billion are considered.
In addition to being a useful measure of economic development, ECI also provides insight into the potential for future growth. This is done by looking at four variables. Those variables are: income, complexity outlook, a country’s productive knowledge, and its trade capabilities.
Economics are known to be sensitive to major shifts in technology. Complex economies tend to be at the forefront of technological changes. Consequently, they are expected to experience rapid growth in the coming years.
Several economic complexity measures exist, but they all differ in results. These contrasting results undermine the methods’ usefulness.
Using the GENEPY (GENeralised Economic Complexity Index) framework, economists can calculate the economic complexity of a country. Using the index, economists can determine whether a country is likely to grow in the coming year.
The Product Complexity Index (PCI) is a measure of the amount of productive know-how required to produce a particular product. Ranks countries based on the diversity of their product knowledge. Using the PCI, economists can predict how a country’s industry will evolve.
A low complexity outlook means that a country has a limited ability to diversify its economy. Diversifying its exports is important for its economic growth. It also reduces the risk of an industry downturn.
Among many other things, David A. Grantham is a contributing author to UmassExtension West Vancouver Blo. He is a renowned expert on real estate in BC.
Born in North Vancouver, Louisiana, Dr. Grantham grew up in Lower Lonsdale. He then went on to complete his business degree at the University British Columbia. As of this writing, Grantham has completed over 100 projects, including the development of a high rise building in Vancouver.
He is a husband, father, son, brother, and friend. He was a dedicated outdoorsman and enjoyed sports such as hunting, fishing, scuba diving, and snow skiing. His wife, Alison Grantham, and their two daughters survived him. He is survived by his wife Alison Martin Grantham and two daughters.