Canada's Economy
Learn about Canada's free market economy, natural resources, and major industries.
Canada has one of the largest economies in the world, based on a system of free enterprise — private ownership and voluntary exchange.
Free Market Economy
In Canada's free market economy, most businesses are privately owned. Canadians are free to make their own economic decisions about work, investment, and spending. The government sets rules and safety nets but does not direct the economy.
Natural Resources
Canada is richly endowed with natural resources, which have been central to its prosperity since the fur trade of the 1600s.
- •Energy — Canada is one of the world's largest oil and natural gas producers.
- •Mining — gold, silver, nickel, copper, uranium, potash, and diamonds.
- •Forests — Canada has about 10% of the world's forests; forestry is a major export industry.
- •Agriculture — wheat, canola, cattle, and hogs from the prairies.
- •Fisheries — one of the world's largest fish and seafood exporters.
Major Trading Partner
The United States is by far Canada's largest trading partner — more than 75% of Canada's exports go to the U.S. Canada and the U.S. share the world's longest undefended border and one of the world's largest bilateral trading relationships.
Service Industries
Today, most Canadians work in service industries — finance, retail, education, health care, tourism, and technology. Manufacturing, once dominant, has declined as a share of employment, while knowledge industries have grown.
🍁 Key Points to Remember
- •Canada has a free market economy — one of the largest in the world.
- •Canada is richly endowed with natural resources: oil, gas, minerals, forests, and fish.
- •Canada is a member of the G8 (now G7) group of major industrialized nations.
- •The United States is Canada's largest trading partner.
- •Service industries (finance, retail, education, health) employ the majority of Canadians.