Canada is widely respected and admired as a nation, and for good reason. It is a parliamentary democracy in which all major parties foster and encourage political and economic stability. The ‘true north strong and free’ also boasts prestigious universities, vast natural beauty, a publicly funded healthcare system, cultural diversity, two official languages, and a reputation for peacekeeping and diplomacy.
These factors have contributed to Canada’s global reputation as a safe haven for investors, as the nation is backed by a stable financial system that promotes innovation. As a result, Canada has earned its status as a global economic powerhouse.
In other words, Canada is much more than maple syrup and hockey. But don’t worry, this list of Canadian economic stats briefly mentions both.
While Canada’s economy has remained resilient for the most part since 2020, it is showing some concerning signs that mirror those of many other countries. In particular, inflation and the housing market are areas of concern.
Below you will find many Canadian economic statistics that every citizen is proud of.
Canada facts and stats – editor’s pick
- 57.5% of Canada’s population hold an advanced education degree.
- Canada is home to the world’s third largest oil reserves.
- The Toronto Stock Exchange is ranked as the 12th largest in the world.
- The Canadian dollar is the 7th most traded currency in the world.
- Hockey is an $11 billion industry.
Canada economy stats and facts for 2023
1. Canada ranks as the world’s eighth largest economy
Canada is ranked as the world’s eighth-largest economy based on GDP nominal estimates of $2.24 trillion (IMF) and $1.98 trillion (World Bank). However, adjusting for purchasing power parity, Canada moves lower in the ranking to the fifteenth-largest economy.
2. Canada’s Equalization Program will see $94.6 billion transferred from Ottawa directly to provinces
As part of Canada’s Equalization Program, the federal government will transfer $94.6 billion to provinces and territories in 2023-2024. The purpose of the Equalization Program is to address fiscal disparities among the “have not” provinces and provide an additional cash inflow to help support economic activity and growth.
3. Canada has the highest percentage of its population with a higher education degree among all G7 countries
Canada has the highest proportion of working-age individuals with a college or university degree among all G7 countries, at 57.5%. This educational advantage proved especially beneficial during the early days of the pandemic, as remote work became the norm and educated individuals were better able to weather the economic challenges.
Here is an interesting Canadian economy fact: educated workers boasted higher employment rates and earnings in 2021 compared to 2016.
4. The service sector makes up approximately 70% of Canada’s economy.
Canada’s economy is primarily driven by the services sector, which accounts for 70.5% of the country’s GDP. Additionally, this sector provides around four out of every five jobs in Canada.
5. Canada has the world’s third largest oil reserves
Canada is home to approximately 9.7% of the world’s total oil reserves, which amounts to around 168 billion barrels of oil. This makes Canada the world’s third-largest oil-rich country, after Saudi Arabia (with 297 billion barrels) and Venezuela (with 303 billion barrels).
6. 75% of all exports are destined to the United States
Total goods exported from Canada increased by 22.1% from 2020 levels to reach $777.1 billion, of which 75% were destined for the United States. Naturally, Canada benefits from sharing the world’s longest undefended border with the world’s largest economy.
7. The Toronto Stock Exchange (TSX) is the 12th largest stock exchange in the world by market capitalization
As of February 16, 2023, the Toronto Stock Exchange (TSX) had a total market capitalization of approximately C$3.4 trillion ($2.76 trillion), making it the 12th largest exchange in the world. The TSX’s ranking is not far removed from cracking into a top-10 position which is currently held by the Saudi Stock Exchange (Tadawul) with a market capitalization of $2.86 trillion.
8. The TSX index performed roughly in line with the Dow in 2022
In 2022, the S&P/TSX Composite Index experienced a decline of 8.5%, which is comparable to the 8.88% loss in the Dow Jones index. However, the TSX’s performance was notably better than the 19.4% loss in the S&P 500 index and the 33% decline observed in the Nasdaq index.
9. The Canadian dollar declined for the first time since 2018
The Canadian dollar (CAD/USD), known as the loonie, experienced a 6.8% decline in value against the US dollar in 2022, and it currently trades at around $0.74. This marks the first yearly decline since 2018. However, this decline benefited Canadians who invested in US assets.
10. The Canadian dollar is the 7th most traded currency in the world
The Canadian dollar ranks as the seventh most traded currency in the world. As of April 2022, the Canadian dollar accounted for 6.2% of total volume which is up from 5.0% in April 2019.
11. Canada’s central bank increased interest rates by 1,700% in 2022
Canada’s central bank, the Bank of Canada, implemented seven interest rate hikes in 2022, making its policy rate soar from 0.25% in March 2022 to 4.5% in January 2023. This marks the most aggressive year of hikes in history. You can read additional Invezz coverage on Canada’s central bank rate hikes by clicking this link.
12. Canada’s inflation ranked among the worst of all developed countries
When excluding Russia, Brazil, Argentina, and Turkey, Canada’s inflation rate ranked among the highest in the G20 group of developed and emerging economies in 2022. In fact, Canada’s inflation peaked at 8.1% during the summer months, making it the third-highest inflation rate in the G20. The country’s inflation rate ended 2022 at 6.8%, which is the highest it has been in 40 years.
13. Canada’s economy is ranked as the 14th freest in the world.
Canada is ranked as the 14th freest economy in the world, according to the Fraser Institute’s Economic Freedom of the World report. The index takes into account factors such as the size of government, freedom to trade internationally, and regulations, among others.
14. Canada is a member of the G7, G20, and OECD.
Canada is a member of the Group of Seven (G7) industrialized nations, the Group of Twenty (G20) major economies, and the Organisation for Economic Co-operation and Development (OECD). A seat at the table means Canada has a platform to advocate for its own economic interests and priorities, such as free trade and environmental sustainability
15. Canada has signed on to 15 free trade agreements
Canada has signed 15 free trade agreements with 51 countries, the most notable of which is the Canada-United-States-Mexico Agreement (CUSMA), which replaced the North American Free Trade Agreement (NAFTA). These FTAs collectively cover 1.5 billion consumers.
16. Canada experienced six recessions since the end of World War 2
Canada is a global economic powerhouse but it is not immune to downturns. Canada has experienced six recessions in recent history. These include the 1957 recession, the 1981-1982 recession, the 1990-1991 recession, the 2001 recession, the Great Recession of 2008-2009, and the COVID-19 recession of 2020.
17. Canada is home to 4.4 million businesses
According to Statistics Canada, Canada was home to 1,336,336 employer businesses and 3,021,567 non-employer businesses that each generated revenue of at least $30,000 at the end of 2022.
18. Canada’s underground economy is estimated at 2.7% of total GDP
In 2021, the underground economy in Canada was valued at $68.5 billion, which represents approximately 2.7% of the country’s GDP. The main driver of this growth was an 18% increase in underground economic activity associated with investments in residential structures.
19. The average hourly wage in Canada rose 4% in 2022
In 2022, the average hourly wage rate in Canada increased by 4% from $30.67 to $31.96. The utilities sector had the highest average hourly wage rate of $47.86, while the accommodation and food services sector had the lowest at $18.50 per hour.
20. 15% of Canadians earn more than $100,000 annually
The average household income in Canada is slightly above $75,000 per year, with 15% of the population earning more than $100,000 annually. To be considered in the top 1% of all earners, a worker would need to earn at least $512,000 per year.
21. Average housing cost was down 18% in January, 2023
As of January 2023, the average home price in Canada had fallen 18% year-over-year to $612,204. Real estate transactions were also down 58% year-over-year to just 20,931, resulting in home sales hitting a new 14-year low to start the year.
22. Housing affordability in Canada has reached its lowest point since the 1980s
According to the National Bank of Canada, a typical home in Canada requires 67.3% of a worker’s salary to service their debt. Invezz’s rough calculation that includes municipal taxes, electricity, and other costs paints a more concerning housing market statistic.
23. Canada accounts for nearly 75% of the world’s maple syrup production
No article on Canadian stats is complete with an obligatory mention of its prized treasure: maple syrup. Canada is the world’s largest producer of maple syrup, accounting for around 71% of global production. In 2020, Canadian maple syrup producers produced a record 13.2 million gallons (49.7 million litres) of syrup. Fun fact: around 3,000 tons of maple syrup worth around $19 million were stolen in 2011 and 2012 as part of the largest heist in Canadian history.
24. Hockey is an $11 billion industry
What’s more Canadian than maple syrup? Hockey. According to a 2015 study, hockey is an $11 billion industry that plays an important role in small communities. The study shows that more than $1 billion in tourism revenue makes its way into cities and towns with a population of less than 100,000.
Conclusion
Despite facing some challenges in recent years, the Canadian economy has shown resilience and continues to grow. The government’s efforts to promote innovation, investment, and trade have contributed to this growth, as well as the country’s highly skilled workforce and diverse range of industries.
As we move forward, it will be interesting to see how the Canadian economy continues to develop and adapt to changing global circumstances. Nevertheless, with a strong foundation and a commitment to sustainable growth, Canada is well-positioned to face whatever challenges and opportunities lie ahead.
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Source: https://invezz.com/news/2023/02/28/canada-economy-stats-24-surprising-facts-you-didnt-know/