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									                      CHAPTER 12

                     Canada
After Free Trade
•   Unemployment 
•   Exports as % of GDP 
      •        from 25% (1992) to 46% (2000)
•   Imports also 
      •        Lower % from US, Japan, UK
      •        Higher % from Mexico, China




     Source:
                          Canadian Exports

           90
           80
           70
           60
           50
C$ Billion
           40
           30
                                                                                                         1992
           20
           10                                                                                            2004
            0




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                                                    Source: Statistics Canada, Bank of Canada, Finance Canada
                            CHAPTER 12

                Canada - Exports
Five Major Export Markets
(Based on 2004 Exports)

                                         1992    2004

      - United States                77.2%      84.5%
      - Japan                            4.6%   2.1%

      - United Kingdom                   1.9%   1.8%
      - China                            1.4%   1.6%

      - Germany                          0.5%   0.7%
                       Canadian Imports
          120

          100

           80

C$ Billion 60

           40
                                                                                    1992
           20                                                                       2004

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                                       Source: Statistics Canada, Bank of Canada, Finance Canada
                          CHAPTER 12

                  Canada - Imports
Five Major Suppliers
(Based on 2004 Imports)

                                       1992    2004

       - United States             65.2%      58.8%
       - China                         1.7%   6.8%
       - Mexico                        1.9%   3.8%
       - Japan                         7.3%   3.8%

       - United Kingdom                2.8%   2.7%
            CHAPTER 12

Canada’s Economic Performance


                         New cars


      GDP



                               Dwelling permits




                                    Source: www.oecd.org
                CHAPTER 12

Canada’s Economic Performance


                             CPI

      UE rate




                              Source: www.oecd.org
                           CHAPTER 12

Canada’s Economic Performance


  10 yr rate

                                    Current
                                    Balance


               3 mo rate




                                              Source: www.oecd.org
                CHAPTER 12

               Canada

Productivity
•   Real GDP  over 6x last 50 years
•   Strong growth 1950s and 60s
•   Declining productivity growth 1970s & 1980s
•   Picked up late 1990s




                             Source: Macroeconomics, McConnell, Brue
                 Growth of GDP per Hour Worked
6.0

5.0

4.0

3.0
                                                                 Canada
2.0
                                                                 United States
1.0

0.0
    71

    73

            75

            77

            79

                    81

                    83

                    85

                    87

                              89

                              91

                              93

                                       95

                                       97

                                       99

                                       01

                                                    03
-1.0
 19

 19

         19

         19

         19

                 19

                 19

                 19

                 19

                           19

                           19

                           19

                                    19

                                    19

                                    19

                                    20

                                                 20
-2.0



                                             Source: http://www.oecd.org
                     Average Annual Productivity Growth
                                             (GDP Growth per Hour Worked)

6.0

5.0

4.0
                                                                                                 1970-1980
3.0                                                                                              1980-1990
2.0                                                                                              1990-2004

1.0

0.0
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                                                                                 Source: http://www.oecd.org
                          CHAPTER 12

             Factors in Growth

• Quantity of labour
     • both population & labour force 
     • immigration offsets lower birth rate
     • women’s participation rates 
• Technological Advance
     • innovative production techniques
     • new managerial methods
     • slower adoption of technology recently
                         CHAPTER 12

             Factors in Growth

• Quantity of Capital
     • almost 36% of growth since 1961 attributable to
       increases in capital
     • also public investment in infrastructure
• Education & Training
     • educational attainment has increased
     • Canada ranks relatively highly on
       international standardized test scores
Source: Macroeconomics, McConnell, Brue
          Average 8th Grade Scores
             (Standardized International Tests 1999)

            MATH                             SCIENCE
1. Singapore         604         1.    Taiwan           569
2. South Korea       587         2.    Singapore        568
3. Taiwan            585         3.    Hungary          552
4. Hong Kong (China) 582         4.    Japan            550
5. Japan             579         5.    South Korea      549
6. Belgium           558         6.    Netherlands      545
7. Netherlands       540         7.    Australia        540
8. Slovak Republic   534         8.    Czech Republic   539
9. Hungary           532         9.    England          538
10. Canada           531         10.   Finland          535
19. US               502         14.   Canada           533
                                 18.   US               515

								
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