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Home About Canada Canada – An Overview An Open and Prosperous Economy

An Open and Prosperous Economy

Canada has one of the most prosperous, stable and open economies in the world. It led the G8 countries in growth in 2002, with a rate of 3.3%. For several years it has had a budget surplus, with moderate inflation and rising employment.

In recent years, the structure of the Canadian economy has changed significantly. Although Canada is still known for its wealth in raw materials and primary products such as oil, gas, minerals, wood and agricultural products, the Canadian economy is increasingly based on knowledge, innovation and technology. The service sector is the main engine of the economy, together with high technology, information and communication technology, the aerospace industry, biotechnology, micro-electronics and environmental technologies.

Foreign trade is essential for Canada's development and in 2002 its exports accounted for 41% of its gross domestic product, the highest rate for an OECD country. Foreign investments, which have doubled in the last ten years, are crucial to developing Canada's economy. Canada is one of the world's most competitive countries. With the opening of international markets, it is a very attractive place for foreign investment and offers great stability for business activity, low business costs, highly skilled workers, a vast network of communications and infrastructure, and a high level of technology.

Canada's Trade and Economic Policy: Canada negotiates agreements and rules that knock down barriers to trade, eliminate red tape, and settle disputes. This ensures the best possible relationship with current trade partners, and creates opportunities in emerging markets. Information on Canadian actions, negotiations and agreements related to international trade, including dispute settlement, as well as links to Web sites of various international trade organizations and institutions.