Canada's economy is highly developed and one of the largest in the world. In 2022, the country's annual gross domestic product (GDP) was $2.14 trillion in current USD, according to the latest available World Bank data. That made Canada the world's ninth-largest economy.
Canada's economy is highly dependent on international trade with exports and imports of goods and services each comprising about one-third of GDP. The country's three largest trading partners are the U.S., China, and the U.K.
Its three largest industries, measured by their contributions to GDP, are real estate, rental, and leasing; manufacturing; and mining, quarrying, and oil and gas extraction.
Canada is home to the e-commerce company Shopify Inc., major banks such as the Royal Bank of Canada, and energy transportation and distribution company Enbridge Inc.
Some of the statistics below may vary between sources because each source uses its own methodology for defining and calculating statistics.
Key Takeaways
- Canada has the ninth-largest economy in the world as of 2022, with a GDP of $2.14 trillion in USD.
- International trade, including both exports and imports, is a large component of Canada's economy, each making up about one-third of GDP.
- Canada's largest trading partners are the U.S., China, and the U.K.
- The three largest industries in Canada are real estate, mining, and manufacturing.
The Canadian Economy by the Numbers
- Canadian 2022 GDP:$2.14 trillion (World Ranking: #9).
- Canadian 2022 GDP per Capita: $54,966.5 (World Ranking: #22).
- Canadian 2022 GDP Growth: 1.5%.
- Canadian 2022 Consumer Price Index (CPI) Inflation: 6.8%.
- Canada's 2022 Merchandise Balance of Trade: a surplus of CAD$21.8 billion because exports were greater than imports.
- Canada's Largest Export Destination in 2022: the U.S. (77% of goods exported).
- Canada's Largest Import Origin as of July 2023: the U.S. (49% of goods imported).
- Canada's Largest Goods Export by % of the total as of Sept. 2023: energy (29%).
- Canada's Largest Goods Import by % of the total as of Sept. 2023: consumer goods (19%).
Canada's Top Industries: Real Estate, Manufacturing, and Mining
Real Estate, Rental, and Leasing
Canada's real estate, rental, and leasing industry is comprised of establishments engaged in the following types of activities: real estate management; selling, renting, or buying real estate for others; appraising real estate; rental and leasing of tangible assets such as automotive equipment; and leasing of nonfinancial intangible assets such as copyrighted works.
GDP for the industry, which employed about 283,777 people in 2022, rose 2.4% for the 12 months ending July 2023, according to the Government of Canada.
Some of the biggest companies in the industry are real estate investment trusts (REITs), including Canadian Apartment Properties REIT, RioCan REIT, and Allied Properties REIT.
Manufacturing
Canada's manufacturing industry is engaged in the physical or chemical transformation of materials or substances into new products. These products may either be finished goods for consumption or semi-finished goods to be used in manufacturing processes.
Canada's industries manufacture food, chemicals, petroleum, fabricated metal products, machinery, transportation equipment, and other products. GDP for the industry, which employed approximately 1.6 million people in 2022, decreased by 0.2% for the 12 months ending July 2023, according to the Government of Canada.
Some major Canadian manufacturers include ATS Automation Tooling Systems, a custom engineer and manufacturer of industrial automated manufacturing systems; Ballard Power Systems Inc., a manufacturer of hydrogen fuel cells; and NFI Group Inc., a manufacturer of heavy-duty transit buses.
Mining, Quarrying, and Oil and Gas Extraction
Canada's mining, quarrying, and oil and gas extraction industry is primarily engaged in the extraction of naturally occurring minerals. The industry is dominated by oil and gas extraction, but other types of mining activity include mining coal and a range of metals, including gold, silver, copper, nickel, and more. Stone, sand, gravel, clay, and ceramic mining and quarrying are also part of the industry, as well as mining for potash.
GDP for the industry, which employs approximately 207,000 people, decreased by 0.6% for the 12 months ending July 2023, according to the Government of Canada.
Some of Canada's biggest mining companies include Nutrien Ltd., a producer and distributor of potash, nitrogen, and phosphate products; Barrick Gold Corp., a gold mining company; and Teck Resources Ltd., a natural resource company that mines for zinc, copper, molybdenum, gold, and metallurgical coal.
Below is a closer look at Canada's 10 biggest industries by contribution to the economy. Together, they are an important reflection of Canada's economy because they contribute about three-quarters of the nation's GDP.
| Major Canadian Industries | ||
|---|---|---|
| Industry Name | Contribution to GDP in July 2023 ($CAD Billion) | Number of People Employed as of 2022 |
| Real Estate, Rental, and Leasing | 266 | 283,777 |
| Manufacturing | 196 | 1,554,625 |
| Mining, Quarrying, and Oil and Gas Extraction | 160 | 206,516 |
| Finance and Insurance | 152 | 807,630 |
| Construction | 150 | 1,130,666 |
| Healthcare and Social Assistance | 149 | 2,223,413 |
| Public Administration | 142 | 1,218,240 |
| Professional, Scientific, and Technical Services | 135 | 1,165,596 |
| Educational Services | 110 | 1,393,587 |
| Wholesale Trade | 106 | Employment figure not represented in data source. |
Source: Statistics Canada (industry GDP and employment data); industry GDP contributions based on seasonally adjusted chained 2012 Canadian dollars.
Canada's Top Trading Partners
In June 2023, Canada's trade balance for goods and services was CAD$1 billion deficit. Total imports were CAD$64.4 billion and total exports were CAD$60.7 billion. Inventories, gross fixed capital formation, and exports each comprise roughly a third, respectively, of Canada's GDP, according to the Government of Canada.
The country's top three trading partners in 2022, by total volume of the exports and imports of goods and services, were the U.S., China, and the U.K.
#1 Trading Partner: The U.S.
In 2022, the value of imports with the United States was CAD$571.6 billion. The value of exports was CAD$681.6 billion. This resulted in a trade surplus of CAD$110 billion. Canada's biggest exports to the United States in 2022 were mineral fuels, oils, distillation products; vehicles other than railway, and machinery, nuclear reactors, and boilers. Canada's biggest imports from the U.S. were vehicles other than railway; machinery, nuclear reactors, and boilers, and mineral fuels, oils, and distillation products
5.5%
Canada's unemployment rate as of Aug. 2023.
Canada's trade relationship with the U.S., as well as Mexico, is governed by the United States-Mexico-Canada Agreement (USMCA), which came into force on July 1, 2020. The agreement includes key provisions in areas such as dairy and agriculture, automobiles, intellectual property, and labor. USMCA replaced the North American Free Trade Agreement (NAFTA), the trade agreement that had governed trade relations between the three countries since 1994.
# 2 Trading Partner: China
In 2022, Canada ran a trade deficit with China in the amount of CAD$37.2 billion. Total imports from China amounted to CAD$73.9 billion while total exports amounted to CAD$36.7 billion. Canada's biggest imports from China in 2022 were electrical and electronic equipment; machinery, nuclear reactors, and boilers, and furniture, lighting signs, and prefabricated buildings. Canada's biggest exports to China were ores slag and ash; mineral fuels, oils, and distillation products, and oil seeds, oleagic fruits, grain, seeds, and fruits.
#3 Trading Partner: The U.K.
In 2022, Canada had a CAD$8.1 billion surplus in trade with the U.K. Total exports amounted to CAD$27.3 billion while total imports amounted to CAD$19.2 billion. Canada's top exports to the U.K. in 2022 were pearls, precious stones, metals, and coins; mineral fuels, oils, and distillation products, and inorganic chemicals, precious metal compounds, and isotopes. Its top imports from the U.K. were machinery, nuclear reactors, and boilers; vehicles other than railway, and mineral fuels, oils, and distillation products.
The Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA) came into effect on April 1, 2021. Following Brexit, the U.K.'s exit from the European Union (EU), the Canada-UK TCA preserves the main benefits of Canada's trade agreements with the EU as outlined under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).
What Is Canada's Rank in Economy Size?
As of 2022, Canada ranked ninth in terms of economic size. Countries with an economy larger than Canada were the U.S., China, Japan, Germany, the U.K., India, France, and Russia.
Is Canada Richer Than the U.S.?
Canada is not richer than the U.S. While Canada does have one of the largest economies in the world, its economy is much smaller than that of the U.S., which has the largest economy in the world as of 2022. The U.S. had a GDP of $25.5 trillion while Canada had a GDP of $2.1 trillion.
Why Is Canada Wealthy?
Canada is a wealthy nation because it has a strong and diversified economy. A large part of its economy depends on the mining of natural resources, such as gold, zinc, copper, and nickel, which are used extensively around the world. Canada is also a large player in the oil business with many large oil companies. The country also has a large financial sector with many banks and other financial institutions, as well as a large real estate industry.
The Bottom Line
Canada is a highly developed nation with one of the largest economies in the world, impacting much of global trade. Its largest industries are real estate, mining, and manufacturing, and it is home to some of the largest mining companies in the world. A large portion of its GDP comes from international trade, with its largest trading partners being the U.S., China, and the U.K.
