Economic Freedom in Canada

Canada is the 14th largest economy in the world and has all the elements of transforming itself in a major player in the world market in the years to come. It has a very strong primary sector with a strong and modern agricultural base and even stronger manufacturing sector. Canadian business houses are among the most renowned and have flourished at a very fast rate in the last three decades. Probably Canada has not been the favorite investment spot for the major world economies but now the perception has changed with Canada being known as the most liberal and investment friendly country. Also the Canadian companies have strong impact on the parts of the world and have marked their presence in most of the developing nations.

Canadian economy has a strong presence in the international market and interestingly Canada is a part of OECD (Organization for Economic Cooperation and Development) and also of the G-7. The Forbes list has categorized 69 Canadian companies in the list of 200 world’s largest companies. In terms of the economic freedom and liberalization, Canada stands tall and Canadian economy has a private to public property ratio of 60:40 and one of the highest levels economic freedoms in the world. The liberal economy has resulted in great investment and better facilities to build institutional capacity. Also having a cordial relationship with the U.S helps it in many ways and the U.S is Canada’s biggest trading partner which forms more than 50% of the total international trade in terms of overall exports and imports.

The key component of the Canadian economy is the International trade which makes up a large part of the Canadian economy, particularly of its natural resources. Also the social overhead cost in the Canadian economy has resulted in a significant spurge of the economy and raised it above the clutches of the 2008 global financial crisis. Another factor that had resulted in its growth is its strong primary economy with vast natural resources. In this regard, we must know that Canada has the second largest oil reserves in the world.
The key industries of Canada which contribute heavily in the GDP are Real estate and rental and leasing Manufacturing, Mining quarrying and oil or gas extraction, Health care and social assistance, Public administration, Finance and insurance, Wholesale trade, Retail trade, Educational services, Professional scientific and technical services. These industries have many success stories attached to them and very interestingly many small entrepreneurs have now become top corporate honchos in Canada.

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