GrossDomestic Product (GDP) is a monetary computation of the market worthof all final goods and services generated in a particular periodmostly annually or quarterly in a particular nation. It is anextensive estimate of economic activity as well as the primary gaugeof the economy’s health. Nominal GDP estimates are utilized toexamine the economic performance of the entire nation or region andto formulate international comparisons. The intensity of the GDPdiscloses information regarding the size of the nation while theadjustment in the GDP from one time to another shows whether thecountry is expanding or contracting. GDP can be computed in threedistinct ways they include the value –added method, expendituremethod as well as income approach. Each method offers a uniqueviewpoint of economic activity in particular nation. Canada generateslatest GDP figures on a monthly basis. The paper aims at expoundingmore on Canada’s G.D.P regarding its growth, rank, per capitaincome, and fiscal year as well as trade memberships.
Theeconomy of Canada is versatile and exceedingly developed in fact, itis among the wealthiest countries in the world. Moreover, the countryis an affiliate of the group 8 commonly referred to as G8 nations.Canada is positioned as thirteenth in the globe regarding GDP havinga total wealth of over 6 trillion dollars. The basis of the economyof Canada is foreign trade accounting for approximately 47 percent ofthe total gross domestic product (GDP).Its primary business partneris the United States. Other trading partners include the UnitedKingdom, China, Israel, European, Japan, India and South Korea(Mackrael). Besides, Canada is among the few developed states thatare a net exporter of petroleum products. Others leading exportsinclude the chemicals, timber, plastics, aircraft, machinery, woodpulp, aluminum as well as telecommunications. The employment rate ofCanada is high, approximated to be 93 percent.
Moreover,the economy of Canada decreased by 0.4 percent from April to Junethis year after a 0.6 percent increase in the earlier periods. It isthe first experienced reduction in four quarters and largest eversince 2009.Studies indicate that it was caused by the decrease in thepetroleum products owing to sustained failing in the power sector.Exports of the products and services primarily added to the reductionin the real GDP, after a 1.8 percent raise in the opening quarter.Retailing of the automobile and their parts declined by 6.0 percentthis is mainly due to the reduction in the exportation of travelercars and trucks. Furthermore, in mid-2014 Canada experienced a sharpdecrease in the prices of crude oil which greatly affected theeconomy of Canada. Since Canada is a net producer of petroleumproducts, lower prices of crude oil affect the economy adversely andhence the nominal GDP growth which is the broadest gauge of the taxbase. Consequently, lower prices of the petroleum products resultedto considerable retrenchment in actual business investment in thecrude and gas sector during the opening quarter of 2015.
Incomeper capita is often utilized statistic for evaluating the economicwellness across nations. It is computed as gross domestic product percapita. Per capital, income is not an assessment of personal incomebut rather gauges the value of goods and services bartered in themarketplace. Canada’s grading on per capita income fell from 6thscore among its trading counterparts in 2008 to 8th position in2008.It has hence remained in this post up to 2012.The income percapita income of Canada was $36,138 in 2012 about $12,000 lower thanNorway, which is the top performer (Mackrael). Per capita income ofCanada lags behind that of United States, U.S. Canada income percapita gap increased between 1980 and 2012 to almost $7,000. Canadais about 84 percent of the U.S. level.
Thetwo primary factors that affected the performance of the economy ofthe Canada in the 2014 and 2015 includes the continuance weakness inthe world economy and the decrease in the global product prices aswell as the decline in prices of crude oil. World developmentremained flat in 2014, reflecting comparatively weak growth in theeuro area and Japan. This weak external demand affected the Canadianexports significantly. Nominal GDP in 2014 was greater than thenormal budget. Nonetheless, the decrease in the prices of oilresulted to the decrease in the country’s growth by an average of5.0 percent in the first three-quarters of 2014 to around 0.4 percent in three-quarter. In 2015, the opening quarter of 2015, nominalGDP decreased by 2.9 percent. Due to the economic situations, shortand long-term interest rates have historically remained at low levelsfor the past two years. In early 2015, the interest rates in Canadadeclined in the opening quarter of 2015.Moreover, the unemploymentrate decreased from 7.1 percent in 2013 to 7 percent in 2014.Consumerprice index (CPI), was below the mid-point of the target band in 2013and 2014.
Insummary, the Canadian economy is among the globe economies that aredoing well, for instance, a human development which is a key forevery nation’s G.D.P is given much attention. In fact, Canada isranked 6th in term of human development. Investors prefer to investin Canada due to its splendid business environment. Foreigninvestment is thriving in Canada this is clearly shown by thequantity of stocks invested which is approximated to be billions inUS dollar. Besides, tourism is one of the major factors that havehelped to boost the economy of Canada. Millions of immigrants haveinvested heavily in the Canada hence increasing its gross domesticproduct significantly.
Mackrael,K."Canada’s GDP Contracts in Second Quarter."WSJ.N.p., 2016. Web. 6 Oct.