Canada's Economy and Natural Resources — Study Notes

Canada is one of the world's wealthiest nations with an economy built on natural resources, manufacturing, services, and trade.

Key Industries by Region

  • Atlantic Canada: Fishing, forestry, tourism, offshore oil (Newfoundland)
  • Quebec: Hydroelectricity, aerospace, aluminum, forestry
  • Ontario: Manufacturing (auto industry), finance (Toronto), technology
  • Prairies: Agriculture (wheat, canola), oil and gas (Alberta oil sands), potash (Saskatchewan)
  • British Columbia: Forestry, mining, film, technology, port trade
  • The North: Mining (diamonds, gold), oil and gas

Trade

Canada is a trading nation. The US is by far the largest trading partner — about 75% of Canadian exports go to the US. NAFTA (now CUSMA/USMCA) governs trade with the US and Mexico.

Natural Resources

Canada has vast natural resources: the world's third-largest oil reserves (oil sands in Alberta), enormous freshwater reserves, extensive forests, and significant mineral deposits. Natural resources have shaped Canadian history and continue to drive the economy.

Practice questions to test your knowledge of the Canadian economy.

Frequently Asked Questions

What is Canada's largest trading partner?
The United States. The US-Canada trade relationship is the largest in the world.

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