The GDP per capita (GDP per person) in Canada is the highest among the industrialized nations. The country has a diverse economy and is home to many industries. In addition, Canada has a multi-faceted service sector. Manufacturing and agriculture are the two main sectors, but the country’s service sector is much larger and more varied. The financial crisis of 2007-08 and the 1918-1919 pandemic both caused a large hit to the manufacturing sector in Canada. COVID-19 is another major cause for concern as it has affected Canada’s economy.
Manufacturing in Canada was hit hard by the financial crisis of 2007-08
The financial crisis of 2007-08 had a devastating effect on the Canadian manufacturing sector, and this affected the entire North American region. While Canada is back to pre-recession levels, the United States and Mexico are still suffering from the consequences of the global economic slowdown. During the recession, the price of staple goods fell dramatically in both countries. This meant that the Canadian manufacturing sector suffered the biggest blow.
The recession in the US was so severe that some economists compared it to the Great Depression of the 1930s, but the Canadian recession was milder than that. In fact, the recession was short-lived, with the Canadian economy recovering from its low levels by early 2011. The Canadian economy recovered from the worst of the crisis in October 2008. Employment and output were up in Canada, but the Canadian dollar continued to weaken. In spite of this, Canadian exports were still hit hard during the recession, and the country managed to pull itself out of recession by December 2008.
Manufacturing in Canada was hit hard by the pandemic of 1918-1919
The 1918-1919 influenza pandemic, also known as the Spanish flu, killed an estimated 25 million people worldwide. The epidemic was a major setback for Canada’s manufacturing industry. The flu epidemic was a result of the H1N1 influenza A virus, which quickly spread throughout western Europe and along major transportation routes. The epidemic lasted for five to eight weeks, and affected all areas of the world.
The influenza pandemic of 1918-1919 affected every inhabited region of the world, and came in multiple waves. The second wave, which occurred in the fall of 1918, was particularly infectious, accounting for ninety percent of deaths. The flu killed approximately 25 million people in Canada and six to nine million in the United States. The epidemic was so widespread that it affected almost every country in the world, reducing the life expectancy by as much as 12 years.
The Spanish flu had severe effects on the Canadian economy, affecting manufacturing, but it also reduced the number of people employed by the sector. While most of the industry was unaffected by the pandemic, some trades were affected more than others. The biggest victims were caterers, waitresses, jewellers, and theatrical employees. According to the Department of Labour and Industry and Social Services, demand for labour in the domestic services and construction sectors exceeded supply. In some cases, firms were forced to work overtime to make up for their shortage of workers.
The outbreak of 1918-1919 is not likely to recur in the near future, but it is an important reminder of the long-term effects of epidemics on society. While the SARS outbreak lasted for a few weeks, the 1918-1919 pandemic was much more widespread and far more devastating. The outbreak of influenza in Canada also shows the role of local health departments in the war on disease.
The Spanish flu spread to the country during the first year of the war. In Toronto, 70,000 people enlisted in the Canadian Expeditionary Force to fight the war. The concern for the troops was matched by a growing awareness that conditions at home needed to be improved. The city of Toronto’s Medical Officer of Health, Dr. Charles J. Hastings, advocated the adoption of modern public health administration methods and promoted the implementation of preventive measures.
Canada’s service sector is vast and multi-faceted
The service sector accounts for a large portion of the country’s GDP. Services in Canada make up 70.5 percent of GDP. This is a significant increase over the previous decade. But the recent growth is modest compared with the high point in 1992. In addition, the share of services in employment has increased from 65.4 percent in 1976 to 79.0 percent in 2017.
Canada’s service sector is very varied. It includes numerous sub-sectors, with the largest being education, which accounts for about half of the sector’s GDP. The rest of the service sector includes management services, financial services, and computer and information services. Other important sub-sectors include professional and business services, maintenance and repair, and advertising. Compared to goods, services make up a smaller share of GDP per capita.
Compared with merchandise trade, Canada’s service exports rank 18th in the world. They make up 2.4 percent of the nation’s total exports. The United States and Europe were Canada’s top two export destinations in 2017. In 2016, FDI from the United States and the EU was the biggest source of foreign direct investment. FDI from Asia was the third largest source of FDI in Canada.
The service exports that Canada makes overseas are a significant share of its economy. However, the service sector is much more complex than that of the manufacturing sector, which accounts for more than half of the country’s exports. Despite these differences, Canada’s service sector has an above-average share of manufacturing and resources. The sector’s growth is highly dependent on the amount of foreign investment it receives.
The service sector in Canada is a diverse and expansive market. Its advantage over other countries can be seen in several subsectors. Information services include access to databases, news agency services, and data storage. In terms of technical services, computer services make up the largest portion of value. In addition, technical services include cross-border delivery of architectural, engineering, and environmental services.
COVID-19 has significantly affected economic activities in Canada
While the extent to which the COVID-19 pandemic has impacted Canada’s economy is unknown, the impact on Canadian food manufacturing is measurable. Between April and May 2020, real GDP in this sector decreased by 8%. This represents a decline of 61% from April and May 2017. This decline in the Canadian food manufacturing industry is particularly significant because this sector is heavily dependent on labor, and it is also the largest employer in the manufacturing sector.
The COVID-19 pandemic has also negatively affected Canada’s international student sector, which contributes over $22 billion in economic activity before the pandemic. As a result of the COVID-19 pandemic, travel restrictions and lockdowns have severely affected student mobility. The study also quantified the impact of the COVID-19 pandemic on Canada’s international student sector in 2020.
The effects of COVID-19 on Canada’s economy are intuitive and quantifiable, and are consistent with recent declines in GDP. Since the outbreak, Canadian real GDP has fallen by 4.4% and is projected to be between -7.1% and -5.8% below pre-COVID levels at year-end. The rise in uncertainty related to the COVID pandemic is responsible for a large part of the recent declines in GDP, and suggests further weakness in the coming quarters.
The shock of the pandemic has also had an adverse effect on the financial markets. The financial markets are crucial to economic activities, as they help manage risk by providing valuable price signals. The COVID-19 pandemic has affected the stock markets, which decreased dramatically while the epidemic spread. While the stock market’s decline has not affected all industries, it is a significant impact on the economy. Further, the impact of the disease will likely continue to ripple through Canadian tourism sector in the coming months.
COVID-19 has had a substantial impact on Canada’s tourism industry. It has resulted in a decline of more than $2.55 billion in GDP. Although the virus has been controlled in some countries, it has proven difficult to contain. This has made the recovery of the economy crucial. As a result, economic recovery is one of the central priorities in the forward-looking agenda. The recovery of the economy requires that economic activities expand to overcome the challenges associated with the virus.
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.