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.
Is Canada a wealthier country than Australia?
In terms of nominal GDP per capita, Australia and Canada had similar levels (based on purchasing power parity, nominal GDP per capita for Australia was approximately US$ 7 000 and US$ 9 000 in 008). Since 1990, Australia’s real GDP per capita has grown at a slightly faster rate than Canada’s.
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.
Where does Canada’s GDP rank globally?
The United States, China, and Japan are the world’s three largest economies in terms of nominal GDP. A variety of factors influence economic growth and prosperity, including workforce education, production output (as indicated by physical capital investment), natural resources, and entrepreneurship. As outlined below, the economies of the United States, China, and Japan each have a unique blend of key elements that have led to economic growth over time.
United States
Since 1871, the United States has been the world’s greatest economy. The United States’ nominal GDP is $21.44 trillion. The GDP of the United States (PPP) is also $21.44 trillion. In addition, the US is rated second in the world in terms of the estimated value of natural resources. The worth of natural resources in the United States was projected to be $45 trillion in 2016.
The powerful economy of the United States is due to a number of causes. The United States is well-known around the world for developing a culture that supports and encourages entrepreneurship, which fosters innovation and, in turn, economic prosperity. The workforce in the United States has become more diverse as a result of the country’s rising population. The United States also has one of the world’s most advanced manufacturing industries, second only to China. In addition, the US dollar is the most extensively utilized currency for international transactions.
China
Between 1989 and 2019, China, the world’s second-largest economy, experienced an average growth rate of 9.52 percent. China has the world’s second-biggest economy in terms of nominal GDP ($14.14 trillion) and the largest in terms of GDP (PPP) ($27.31 trillion). China’s natural resources are estimated to be worth $23 trillion, with rare earth metals and coal accounting for 90% of the total.
China’s 1978 economic reform initiative was a huge success, resulting in an increase in average economic growth from 6% to over 9%. The reform program prioritized the establishment of private and rural enterprises, the relaxation of governmental price rules, and investments in workforce education and industrial output. Worker efficiency is another driving element behind China’s economic success.
Japan
With a GDP of $5.15 trillion, Japan is the world’s third-largest economy. Japan’s Gross Domestic Product (PPP) is $5.75 trillion. Because Japan’s economy is market-driven, businesses, production, and prices change in response to customer demand rather than government intervention. While the Japanese economy was struck hard by the 2008 financial crisis and has been slow to recover since then, the 2020 Olympics are projected to provide it a boost.
The electronic products sector, which is the world’s largest, and the automobile industry, which is the world’s third largest, are the backbones of the Japanese economy. The Japanese economy confronts significant hurdles in the future, including a dwindling population and an ever-increasing debt, which is at 236 percent of GDP as of 2017.
Germany
With a GDP of $4.0 trillion, Germany has the world’s fourth-largest economy. Germany has a GDP (PPP) of $4.44 trillion and a per capita GDP of $46,560, making it the world’s 18th most prosperous country. The highly developed social market economy of Germany is Europe’s largest and strongest, with one of the most trained workforces. Germany accounted for 28 percent of the euro area economy, according to the International Monetary Fund.
Car manufacturing, machinery, household equipment, and chemicals are among Germany’s major industries. The economy suffered a substantial setback following the 2008 financial crisis due to its reliance on capital goods exports. Due to the Internet and the digital age, the German economy is currently in the midst of its fourth industrial revolution. This change is known as Industry 4.0, and it encompasses solutions, processes, and technologies, as well as the usage of IT and a high degree of system networking in factories.
India
With a GDP of $2.94 trillion, India’s economy is the world’s fifth largest, surpassing the United Kingdom and France in 2019. India’s GDP (PPP) is $10.51 trillion, which is higher than Japan’s and Germany’s combined. India’s GDP per capita is $2,170 (for contrast, the United States’ GDP per capita is $62,794), owing to the country’s large population. However, India’s real GDP growth is forecast to slow for the third year in a row, from 7.5 percent to 5 percent.
From its earlier autarkic practices, India is evolving towards an open-market economy. Industrial deregulation, fewer controls on foreign trade and investment, and privatization of state-owned firms were all part of India’s economic liberalization in the early 1990s. These policies have aided India’s economic development. India’s service sector is the world’s fastest-growing sector, accounting for 60% of the economy and 28% of employment. Manufacturing and agriculture are two more important economic sectors.
United Kingdom
The United Kingdom is the world’s sixth-largest economy, with a GDP of $2.83 trillion. The UK is ranked ninth in terms of GDP purchasing power parity (PPP) with a GDP (PPP) of The United Kingdom is rated 23rd in the world in terms of GDP per capita, with $42,558. By 2023, the UK’s GDP is anticipated to drop to $3.27 trillion, making it the world’s seventh-largest economy. In 2016, the United Kingdom was the world’s tenth-largest exporter of products, sending commodities to 160 countries. The United Kingdom was the first country to industrialize in the 18th century.
The service sector, notably the financial services industry, dominates the UK economy, accounting for over 80% of GDP. London is the world’s second-largest financial center. Manufacturing and agriculture are the UK’s second and third major industries, respectively. Britain has the world’s second-largest aerospace sector and the tenth-largest pharmaceutical business.
France
France is Europe’s third-largest economy (after Germany and the United Kingdom) and the world’s seventh-largest economy. The nominal GDP of France is $2.71 trillion. France has the 19th largest GDP per capita in the world, at $42,877.56, and a GDP (PPP) of $2.96 trillion. According to the World Bank, France has sadly faced high unemployment rates in recent years, with unemployment rates of 10% in 2014, 2015, and 2016, and 9.681 percent in 2017.
The economy of France is a diverse, free-market-oriented economy. Agriculture and tourism, as well as the chemical industry, are important sectors for France. France owns nearly a third of the European Union’s agricultural land and is the world’s sixth-largest agricultural producer and second-largest agricultural exporter, after the United States. France is the most visited country in the planet. With 28 of the 500 largest firms, France is ranked fifth in the Fortune Global 500, behind the United States, China, Japan, and Germany.
Italy
Italy is the eighth-largest economy in the world, with a nominal GDP of $1.99 trillion. Italy’s economy is worth $2.40 trillion in PPP terms, with a per capita GDP of $34,260.34. By 2023, Italy’s economy is predicted to grow to $2.26 trillion. Unfortunately, Italy has a comparatively high unemployment rate of 9.7% and a debt level of 132 percent of GDP.
Italy’s exports, fortunately, are assisting in the recovery of the economy. Italy is the world’s eighth-largest exporter, with 59 percent of its exports going to other European Union members. Italy was predominantly an agrarian economy before World War II, but it has since evolved into one of the world’s most advanced nations. Italy is the European Union’s second-largest exporter, trailing only Germany, and has a huge trade surplus thanks to its exports of machinery, vehicles, food, apparel, luxury products, and other items.
Brazil
With a nominal GDP of $1.85 trillion, Brazil is the ninth largest economy in the world and the largest in Latin America. Brazil is also Latin America’s largest and most populous country. Brazil has a per capita GDP of $8,967 and a GDP (PPP) of $2.40 trillion, ranking 73rd in the world. Natural resources worth an estimated $21.8 trillion in the country include large deposits of timber, uranium, gold, and iron.
Brazil is a free-market economy in the early stages of development. Brazil was one of the world’s fastest-growing major economies from 2000 to 2012. Brazil, on the other hand, has one of the world’s most unequal economies. The economic crisis, corruption, and a lack of public policies all contributed to an increase in the poverty rate in 2017, and many people became homeless. Six billionaires in Brazil alone are wealthier than more than 100 million of the country’s poorest citizens.
Canada
With a nominal GDP of $1.73 trillion, Canada is the world’s tenth-largest economy. Canada’s per capita GDP of $46,260.71 places it 20th in the world, while its GDP (PPP) of $1.84 trillion places it 17th. By 2023, Canada’s GDP is predicted to reach $2.13 trillion.
With a $33.2 trillion projected worth of natural resources, Canada ranks fourth in the world. Because of its abundant natural resources, such as petroleum and natural gas, Canada is regarded as an energy superpower. Canada is one of the least corrupt countries in the world and one of the top 10 trading countries, according to the Corruption Perceptions Index. On the Index of Economic Freedom, Canada outperforms the United States and has a low degree of economic inequality.
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.
How is GDP calculated by Statistics 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.
Who has a more prosperous economy? Which is better, the United States or Canada?
On the basis of GDP, debt-to-GDP ratio, inflation, unemployment, public debt, taxation, and purchasing power parity, this article compares the economies of Canada with the United States.
The population of Canada was 36,991,981 at the time of the 2021 Census, whereas the population of the United States was 331,449,281 at the time of the 2020 Census, nearly 10 times that of Canada.
According to figures from the International Monetary Fund (IMF) published in an April 2018 World Economic Forum article, the US GDP grew from US$19.4 trillion in 2017 to US$20.4 trillion in 2018. The United States has the world’s largest economy, while Canada ranks tenth with a GDP of US$1.8 trillion. The GDP of Canada is comparable to that of Texas, which had a gross state product (GSP) of US$1.696 trillion in 2017.
The United States’ share of the global market economy, estimated at US$79.98 trillion, is around 25%, down from 35% in 2005. China’s share of the global e-commerce market has risen rapidly from less than 1% in 1998 to 42 percent in 2018. With a GDP of $14 trillion, China has overtaken the United States as the world’s second largest economy.
Canada’s debt-to-GDP ratio in 2017 was 89.7%, compared to 107.8% in the United States.
According to the January 2018 International Monetary Fund’s (IMF) annual World Economic Outlook, the US GDP climbed by 2.3 percent to US$19,390.6 billion, while Canada’s GDP increased by 3% to US$48,265 billion (WEO).
According to the IMF’s 2018 annual Article IV Mission to Canada, Canada has the lowest “total government net debt-to-GDP ratio” of all G7 countries, including the United States. Since 2016, Canada has led the G7 in economic growth. Canada’s jobless rate has dropped to its lowest level since 1978. Since early 2016, Canada has added over 600,000 full-time employment.
According to the IMF’s annual Article IV Mission to the United States in 2018, “Unemployment is low, inflation is under control, and growth is expected to pick up. The economy is predicted to expand for the longest time in recorded US history during this administration.” Competition, debt, sustainability analysis, economic indicators, fiscal policy, fiscal sustainability, monetary policy, tax policy, and trade policy are some of the topics discussed.
The World Economic Outlook of the International Monetary Fund (IMF) gives the main economic data in Canada for chosen years between 1980 and 2017. Inflation of less than 2% is considered positive.
Between 1980 and 2017, this table shows the same economic indicators in the United States for chosen years. Inflation of less than 2% is considered positive.
Will Australia’s GDP overtake that of Canada?
According to a significant study, Australia will have the seventh largest economy in the world and a population of 36 million people by 2100.
According to University of Washington studies, Australia currently has the 12th largest economy, but it will overtake Canada, Russia, Brazil, and Italy in 80 years.
Because the nation’s birth rate is expected to fall from 1.86 to 1.69 births per 1,000 people, the estimated population increase will be due to immigration.
In countries where birth rates are dropping, the study found that immigration is critical to economic growth and prosperity.
‘Countries like Canada, Australia, and the United States, which have historically maintained their working-age populations through migration, would fair well,’ according to the study.
‘Liberal immigration with effective assimilation into these societies is the best policy for economic progress, budgetary stability, and geopolitical security.’
Dr. Christopher Murray and Professor Stein Vollset of the University of Washington in Seattle led a team of 24 scientists who forecasted the populations of 195 countries in 2100. The report was published in The Lancet, a British medical publication.