Canada Industry Sectors

Prior to World War II, the Canadian economy was primarily focused on agriculture with over 60 percent of the population living in rural towns or farms. Canada had also struggled to recover from the Great Depression, with Gross National Product falling by 43 percent and exports dropping by 50 percent between 1929 and 1933. By 1933, unemployment had risen to more than 25%.

Prior to World War II, the Canadian economy was primarily focused on agriculture with over 60 percent of the population living in rural towns or farms. Canada had also struggled to recover from the Great Depression, with Gross National Product falling by 43 percent and exports dropping by 50 percent between 1929 and 1933. By 1933, unemployment had risen to more than 25%.

However, World War II soon marked a major transformation in the Canadian economy. Manufacturing, mining and services experienced rapid growth in order to meet the demands of the war, while agriculture production started becoming more and more mechanised and efficient.

The upturn in industrial production and manufacturing saw rising prosperity for Canadians with new jobs being created. Industries also benefitted from a more highly trained and diversified labour force that had arisen because of the war.

Today, Canada resembles most other developed nations in which services have come to dominate the economy. However, Canada still maintains many of its previous key industries, particularly logging and oil, thanks to the abundance of natural resources in the country.

Canada’s Industry Sectors

Canada’s GDP composition for 2010 was made out of agriculture (2 percent), industry (20 percent) and services (78 percent).

Despite only contributing to 2 percent of Canada’ GDP, Canadian agricultural products are among the most widely sought of in the world. Canada is one of the world’s largest suppliers of agricultural products – they lead the world in lentils, linseed, mustard seed and peas and among the top ten producers of barley, blueberries, cranberries, mixed grain, oats, rapeseed, pork, wheat, turkey, raspberries, rye, soybeans, beef, mushrooms, chick-peas and maize. 

Although the Canadian agriculture industry has benefited from government subsidies and supports, Canada has been an advocate of reducing market subsidies from the WTO. In 2000, Canada used only US$848.2 million of its US$4.3 billion subsidy allowance granted by the WTO.

Industry is an equally important part of Canada’s economy and society. After rising for several consecutive years, Canada’s industrial growth rate, which measures the annual percentage increase in the country’s manufacturing, mining and construction segments, declined by 8 percent in the year 2009 as a result of the global financial crisis. However, industrial production has since recovered and in 2010, the industrial production growth rate was at 5.8 percent.

Manufacturing and other industries related to its natural resources are crucial to Canadian industries. In 2010, the list of key Canadian industries includes transportation equipment, chemicals, processed and unprocessed minerals, food products, wood and paper products, fish products, petroleum and natural gas.

However, as one of largest and most advanced economies in the world, Canada has still followed the general pattern of development for wealthy nations – from an agricultural economy to a industry based economy and finally a services based economy. Retail, business, education and health have benefited from modern technology and processes to be among the most highly valued industries both domestically and globally.

Canada’s major banks for example managed to emerge from the global financial crisis to be among the strongest in the world, thanks to the financial industry’s tradition of conservative lending practices and strong capitalization. Canada’s finance and banking industries remain among the fastest growing in the world and have potential for even further growth.