- As of 2017, Canada’s nominal (current) Gross Domestic Product (GDP) is $1,647,120,175,449 (USD).
- In 2017, Canada’s real GDP (constant, inflation-adjusted) was $1,883,707,911,711.
- In 2017, the GDP Growth Rate was 3.05 percent, an increase of 55,705,639,681 US dollars over 2016, when Real GDP was $1,828,002,272,030.
- In 2017, GDP per capita in Canada (with a population of 36,732,095 people) was $51,282, up $1,039 from the previous year ($50,243); this is a 2.1 percent increase in GDP per capita.
What will Canada’s GDP be in 2021?
According to Trading Economics global macro models and analysts, GDP of Canada is predicted to reach 1670.00 USD billion by the end of 2021. According to our econometric models, the GDP of Canada is expected to trend at 1740.00 USD billion in 2022.
What does GDP mean in Canada?
This statistics program’s objective is to offer data for current economic analysis. From an industry standpoint, it gives a measure of the economic production that takes place inside the geographical bounds of Canada.
Description
The Gross Domestic Product (GDP) by industry at basic prices is a measure of the economic production that occurs inside Canada’s borders. Capital consumption expenses, or the expenditures associated with the depreciation of capital assets (buildings, machinery, and equipment), are included in the term “gross” in GDP. Using the North American Industrial Classification System, production estimates are released for 198 individual industries and 89 aggregates to give a variety of degrees of detail useful for analyzing industrial economic performance.
The GDP by industry measures are a monthly extension of the Canadian System of Macroeconomic Accounts Supply and Use Tables, and provide an additional dimension to the income and expenditure-based GDP estimates (SUT).
Statistical activity
The Canadian System of Macroeconomic Accounts is a statistical framework for studying the condition and behavior of the Canadian economy that is conceptually integrated. The accounting are focused on the measurement of activities related to the production of products and services, their sales in end markets, the supporting financial transactions, and the consequent wealth positions.
The Supply and Use tables are calculated on a yearly basis at the national, provincial, and territory levels. They are available around two and a half years after the end of the reference year, due to the time it takes to gather the necessary source data and the difficulty of generating such a detailed account. Two industry-based programs – one creating the country’s current monthly GDP statistics (record no. 1301), the other annual provincial-territorial estimates (record no. 1303) – have been set up to provide more up-to-date information to users for current analysis. These two programs, which may be thought of as extensions of the supply and use tables, employ a collection of indicators to forecast GDP based on industry benchmarks derived from the supply and use tables.
Target population
All statistical units in Canada engaged in the economic activity of producing goods and services are included in the target population.
All establishments in Canada are included in the observed population. The level at which accounting data required to measure production is available is referred to as the establishment. As a statistical unit, the establishment is defined as the most homogeneous unit of production for which a household, business, or government keeps accounting records from which all the data elements required to compile the full structure of the gross value of production (total sales or shipments, and inventories), the cost of materials and services, and the labor and capital used in production can be assembled.
Data sources
The GDP calculations rely significantly on data from Statistics Canada, other federal departments and agencies, provincial government departments, and private sector sources. As part of the difficult process of calculating GDP by industry, a considerable quantity of data is compiled, integrated, and analyzed.
For most (but not all) industrial industries, data from the Monthly Survey of Manufacturing is used. Many service businesses rely on data from the Survey of Employment, Payrolls, and Hours (SEPH).
Error detection
Data at the working level industry, the lowest level of industry detail for which GDP estimates are compiled directly, are checked for large month-to-month percentage changes and potential source data issues, as well as analyzed for time series consistency, links to current economic events, and coherence with related economic indicators not used in the GDP estimates.
Estimation
Annual estimates of Gross Domestic Product (GDP) at basic prices (or value added) by industry can be calculated directly from the Supply and Use Tables by adding factor incomes and depreciation, or indirectly by subtracting the cost of intermediate goods and services from the value of gross production or output.
Economic growth of industries is measured using constant price estimates of GDP, which removes the effect of price fluctuations. The double-deflation approach is used to calculate annual constant price GDP estimates, as explained in publication Catalogue no. 15F0077G, A guide to deflating the input-output accounts: sources and methods.
For all but the most recent two or three years, both current and constant price estimates of GDP by industry are calculated annually within the scope of the Supply and Use tables. Real GDP by industry can be calculated for the years following the most recent Supply and Use tables, as well as for monthly estimates, by projecting the link between real gross output and real values added, which holds over short periods of time. That is, the amount of value added created from a given volume of output for a certain industry remains relatively consistent over short periods of time, as big technological advancements are necessary to drastically alter this connection.
To project the relationship between these qualities and value added, as determined from the deflated Supply and Use tables, indicators of real output, employment, or real inputs are utilized to estimate the actual value added of an industry on a monthly basis. For an overview of the basic methodology and the numerous statistical techniques used in the computation of monthly GDP, see Catalogue no. 15-547-X, Gross Domestic Product by Industry: Sources and Methods. Gross Domestic Product by Industry: Sources and Methods with Industry Details, Catalogue no. 15-548-X, provides a full description of the data sources used for each industry. In the documentation area, you’ll find a paper with an up-to-date summary of the data sources and methodologies used to compile monthly national estimates of GDP by industry.
Individual industries’ real GDP metrics are derived and then combined to arrive at total economic growth. The monthly GDP by industry figures are chained volume estimates with 2012 as the reference year. This means that the estimates for each industry and the aggregate come from a chained volume index multiplied by the value added of the industry in 2012. The monthly estimates are compared to the constant-price supply and usage tables’ annual chained Fisher volume indexes of GDP. The projections for the period beginning in January 2019 are calculated by chaining a Laspeyres volume index at 2018 prices to the prior period. As a result, the monthly GDP by industry estimates are more comparable to the quarterly expenditure-based GDP figures.
Disclosure control
Estimates of gross domestic product by industry are derived from supply and use tables with no confidentiality suppressions. The distance between respondent information obtained from business surveys and administrative data and the aggregating structure and the conceptual and statistical measurement framework underlying the compilation of the supply and use framework has been determined to be sufficiently large to mask respondent information and eliminate the need for data suppressions.
Revisions and seasonal adjustment
Updates to benchmark data, projectors, methodology, and seasonal adjustments all result in revisions. For the January to August reference months, the revision policy is to go back to the previous year; for the September reference month, go back to January of the fourth preceding year; and for the October to December reference months, go back to January of the current year. Periodically, comprehensive revisions are carried out.
Statistical changes are made to the Supply and Use tables to reflect the most recent data from surveys, taxation statistics, public accounts, censuses, and other sources, as well as new methodology, data sources, concepts, or definitions, and the annual benchmarking process.
The X-12-ARIMA seasonal adjustment method is used by Statistics Canada to seasonally adjust its time series. Seasonally adjusted data is created by adjusting monthly data to reflect variations in the number of trade days within each month and applying seasonal adjustment factors. The X-12-ARIMA approach generates trading day adjustments based on the relative importance of each day of the week as well as the number of days in the month.
Data accuracy
The Supply and Use tables to which GDP is linked determine GDP by industry. When necessary, the GDP by industry program may be forced to use lower-quality production projections than the data sources supporting GDP from the Supply and Use tables; in these circumstances, the measure’s quality is reduced but still adequate. The availability of proper prices also has an impact on the accuracy of actual GDP calculations. The higher the level of aggregation, the more reliable the estimates are in general. There is a trade-off between accuracy and timeliness. Estimates are amended and improved as more reliable data becomes available, until the benchmark Supply and Use Tables are issued, about two and a half years after the monthly GDP estimates per industry were initially published.
The following are the most common sources of source data flaws: a) undercoverage; b) improper concepts and definitions. The following are briefly discussed:
a) Undercoverage – This flaw is usually addressed by inflating reported data by a factor that makes the data more representative of the universe in question.
b) Unsuitable concepts and definitions for the CSMA – The data used to calculate monthly GDP vary greatly in terms of coverage, details, definitions, and concepts, and these characteristics frequently do not align with those required. Using properly established estimating techniques, they must be thoroughly checked and adjusted for consistency and coverage.
There is no way to calculate a direct gauge of the margin of error in the estimates. In the compilation of GDP by industry, data reliability is a product of data integration and analysis. They rely on both the quantitative characteristics of the data sources employed, such as sample size, response rate, and coefficient of variation, and the expert judgment of analysts who combine the data from these many sources.
Furthermore, because the monthly GDP by industry program is based on yearly real GDP estimates derived from the Supply and Use tables, the quality of these estimates has a direct impact on the monthly GDP measurements. On request, the quality ratings of GDP estimates from the current dollar Supply and Use tables for the most recent benchmark year.
There are currently no data reliability ratings for GDP estimates by industry in constant prices.
Documentation
For more information, see Statistics Canada’s Catalogue no. 13-605-X, “Latest developments in the Canadian economic accounts.”
The chronology of events, conceptual modifications, classification changes, and data updates are all available in the side bar menu of this electronic publication.
What accounts for Canada’s high GDP?
Real estate, mining, and manufacturing are the three main businesses, and it is home to some of the world’s largest mining corporations. International trade accounts for a major share of its GDP, with the United States, China, and the United Kingdom as its top trading partners.
Is a high GDP beneficial?
GDP is significant because it provides information on the size and performance of an economy. The pace of increase in real GDP is frequently used as a gauge of the economy’s overall health. An increase in real GDP is viewed as a sign that the economy is performing well in general.
What is this year’s GDP?
Retail and wholesale trade industries led the increase in private inventory investment. The largest contributor to retail was inventory investment by automobile dealers. Increases in both products and services contributed to the increase in exports. Consumer products, industrial supplies and materials, and foods, feeds, and beverages were the biggest contributions to the growth in goods exports. Travel was the driving force behind the increase in service exports. The rise in PCE was mostly due to an increase in services, with health care, recreation, and transportation accounting for the majority of the increase. The increase in nonresidential fixed investment was mostly due to a rise in intellectual property items, which was partially offset by a drop in structures.
The reduction in federal spending was mostly due to lower defense spending on intermediate goods and services. State and local government spending fell as a result of lower consumption (driven by state and local government employee remuneration, particularly education) and gross investment (led by new educational structures). The rise in imports was mostly due to a rise in goods (led by non-food and non-automotive consumer goods, as well as capital goods).
After gaining 2.3 percent in the third quarter, real GDP increased by 6.9% in the fourth quarter. The fourth-quarter increase in real GDP was primarily due to an increase in exports, as well as increases in private inventory investment and PCE, as well as smaller decreases in residential fixed investment and federal government spending, which were partially offset by a decrease in state and local government spending. Imports have increased.
In the fourth quarter, current dollar GDP climbed 14.3% on an annual basis, or $790.1 billion, to $23.99 trillion. GDP climbed by 8.4%, or $461.3 billion, in the third quarter (table 1 and table 3).
In the fourth quarter, the price index for gross domestic purchases climbed 6.9%, compared to 5.6 percent in the third quarter (table 4). The PCE price index climbed by 6.5 percent, compared to a 5.3 percent gain in the previous quarter. The PCE price index grew 4.9 percent excluding food and energy expenses, compared to 4.6 percent overall.
Personal Income
In the fourth quarter, current-dollar personal income climbed by $106.3 billion, compared to $127.9 billion in the third quarter. Increases in compensation (driven by private earnings and salaries), personal income receipts on assets, and rental income partially offset a decline in personal current transfer receipts (particularly, government social assistance) (table 8). Following the end of pandemic-related unemployment programs, the fall in government social benefits was more than offset by a decrease in unemployment insurance.
In the fourth quarter, disposable personal income grew $14.1 billion, or 0.3 percent, compared to $36.7 billion, or 0.8 percent, in the third quarter. Real disposable personal income fell 5.8%, compared to a 4.3 percent drop in the previous quarter.
In the fourth quarter, personal savings totaled $1.34 trillion, compared to $1.72 trillion in the third quarter. In the fourth quarter, the personal saving rate (savings as a percentage of disposable personal income) was 7.4 percent, down from 9.5 percent in the third quarter.
GDP for 2021
In 2021, real GDP climbed 5.7 percent (from the 2020 annual level to the 2021 annual level), compared to a 3.4 percent fall in 2020. (table 1). In 2021, all major subcomponents of real GDP increased, led by PCE, nonresidential fixed investment, exports, residential fixed investment, and private inventory investment. Imports have risen (table 2).
PCE increased as both products and services increased in value. “Other” nondurable items (including games and toys as well as medications), apparel and footwear, and recreational goods and automobiles were the major contributors within goods. Food services and accommodations, as well as health care, were the most significant contributors to services. Increases in equipment (dominated by information processing equipment) and intellectual property items (driven by software as well as research and development) partially offset a reduction in structures in nonresidential fixed investment (widespread across most categories). The rise in exports was due to an increase in products (mostly non-automotive capital goods), which was somewhat offset by a drop in services (led by travel as well as royalties and license fees). The increase in residential fixed investment was primarily due to the development of new single-family homes. An increase in wholesale commerce led to an increase in private inventory investment (mainly in durable goods industries).
In 2021, current-dollar GDP expanded by 10.0 percent, or $2.10 trillion, to $22.99 trillion, compared to 2.2 percent, or $478.9 billion, in 2020. (tables 1 and 3).
In 2021, the price index for gross domestic purchases climbed by 3.9 percent, compared to 1.2 percent in 2020. (table 4). Similarly, the PCE price index grew 3.9 percent, compared to 1.2 percent in the previous quarter. The PCE price index climbed 3.3 percent excluding food and energy expenses, compared to 1.4 percent overall.
Real GDP rose 5.5 percent from the fourth quarter of 2020 to the fourth quarter of 2021 (table 6), compared to a 2.3 percent fall from the fourth quarter of 2019 to the fourth quarter of 2020.
From the fourth quarter of 2020 to the fourth quarter of 2021, the price index for gross domestic purchases grew 5.5 percent, compared to 1.4 percent from the fourth quarter of 2019 to the fourth quarter of 2020. The PCE price index climbed by 5.5 percent, compared to 1.2 percent for the year. The PCE price index increased 4.6 percent excluding food and energy, compared to 1.4 percent overall.
Source Data for the Advance Estimate
A Technical Note that is issued with the news release on BEA’s website contains information on the source data and major assumptions utilized in the advance estimate. Each version comes with a thorough “Key Source Data and Assumptions” file. Refer to the “Additional Details” section below for information on GDP updates.
Is Canada wealthier than the United States?
Because both Canada and the United States are developed countries, their economies are similar. While both countries will be in the top ten economies in the world in 2022, the United States will be the largest, with a GDP of US$24.8 trillion, and Canada will be ninth, with a GDP of US$2.2 trillion.
Which country has the highest GDP in 2021?
The United States and China would rank first and second in both methods’ gdp rankings by 2021. The nominal gap between the US and China is narrowing, since China’s gdp growth rate of 8.02 percent in 2021 is higher than the US’s 5.97 percent. In nominal terms, the United States will be $6 trillion ahead of China in 2021. On a per-person basis, China surpassed the United States in 2017 and is now ahead by $4 trillion, with the gap widening. On a per capita basis, China will continue to be the world’s greatest economy for the next few decades, since the US, which is rated second, grows slowly and India, which is placed third, lags far behind.
In terms of nominal GDP, the top ten would remain same. Iran has surpassed the Netherlands, Saudi Arabia has surpassed Turkey, and Switzerland has surpassed Switzerland on the top 20 list. South Africa’s economic ranking would rise eight places in the top 50, while Egypt would drop four places.
There would be no change in the top 10 list in the ppp ranking. Taiwan overtaking Australia is another change in the top 20. Ireland will move up three places in the top 50.
In 2021, all of the economies in the top 50 will grow at a positive rate. With a 14.04 percent growth rate, Ireland is the fastest-growing economy, followed by Chile (11.00 percent ). Thailand has the slowest growth rate, at 0.96 percent, followed by the UAE (2.24 percent) and Japan (2.36 percent ).
In nominal terms, the United States (1,5) appears on both lists of the top 10 GDP and GDP per capita. In terms of GDP and GDP per capita, Germany (4,17), Canada (9,15), Australia (13,9), the Netherlands (18,12), and Switzerland (20,3) are among the top twenty countries. In both rankings, the United States (2,8) is in the top 10, while Germany (5,18) and Taiwan (18,15) are in the top twenty.
In 2021, which country will have the greatest GDP?
What are the world’s largest economies? According to the International Monetary Fund, the following countries have the greatest nominal GDP in the world:
Are taxes included in GDP?
Sales taxes and other excise taxes are examples of indirect business taxes that businesses collect but are not counted as part of their profits. As a result, indirect business taxes are included in the income approach to computing GDP rather than the spending approach.