Outdated Quebec Metropolis in Canada. Canada’s GDP per capita is nominally $52,051.35, however when measured in … [+]
In current tales, we examined in depth completely different nations’ GDP per capita and economies, corresponding to Vietnam’s GDP per capita in addition to Mexico’s GDP per capita. The financial chaos created by the pandemic has made the research of the worldwide economic system and particular person nations’ economies extra pertinent than ever. Whereas some nations have weathered the financial storm pretty properly, others have been severely impacted. Utilizing knowledge from The World Bank, we analyzed varied nations’ GDP per capita (in present U.S. {dollars} in addition to in fixed 2015 U.S. {dollars}) and their change over time. For this research, we determined to give attention to Canada and its GDP per capita.
Learn on to seek out out the Canada GDP per capita, its change over time, and different financial particulars about America’s northern neighbor.
Canada GDP per Capita: A Detailed Evaluation
In response to the most recent knowledge (2021 knowledge) from The World Financial institution, Canada GDP per capita is $52,051.35 in present U.S. {dollars}. That’s a serious enchancment from the earlier yr when Canada GDP per capita was $43,258.26 in 2020. 12 months over yr, that is nominally nearly a rise of $10,000 in GDP per capita. The truth is, the final time that Canada GDP per capita exceeded $52,000 was again in 2013, when the nation’s GDP per capita was $52,635.17. Nonetheless, all these figures are in present U.S. {dollars}. Canada’s GDP per capita by a distinct lens reveals a much less sanguine image.
Utilizing a distinct metric, particularly, fixed 2015 U.S. {dollars} somewhat than present U.S. {dollars}, Canada’s GDP per capita is $43,945.56 as of 2021. Utilizing fixed 2015 U.S. greenback values present a extra real looking image of Canada’s GDP per capita over time. The place utilizing present U.S. {dollars} makes it seem that Canada GDP per capita rose from 2020 to 2021 by nearly $10,000, utilizing fixed 2015 U.S. {dollars} reveals a a lot smaller improve: From $42,258.69 in 2020 to $43,945.56 in 2021 — roughly a 4% improve year-over-year, however nothing just like the 20.3% improve that outcomes from calculating Canada GDP per capita in present U.S. {dollars}.
Like most nations, Canada’s economic system was struck exhausting by the pandemic. Based mostly on annual GDP per capita development, which The World Financial institution calculates utilizing fixed native foreign money, Canada GDP per capita fell by 6.32% from 2019 to 2020. In fixed 2015 U.S. {dollars}, Canada GDP per capita fell from $45,109.24 in 2019, all the way down to $42,258.69 in 2020. What’s extra, Canada’s GDP per capita in 2019 (in fixed 2015 U.S. {dollars}) was a historic peak: In no yr earlier than 2019 did Canada GDP per capita exceed $45,000.
Desk of Canada GDP per Capita Over the Years
To get a clearer image of Canada’s GDP per capita, beneath is a desk that particulars the nation’s GDP per capita in present U.S. {dollars}, fixed 2015 U.S. {dollars}, and annual proportion development in GDP per capita, which The World Financial institution calculates primarily based on fixed native foreign money. This is a have a look at Canada GDP per capita over the past 15 years:
Based mostly on the values given in present U.S. {dollars} for Canada’s GDP per capita, from 2006 to 2021 the nation’s GDP per capita rose by 28.5%: From $40,504.06 to $52,051.35. Nonetheless, when analyzing Canada GDP per capita in fixed 2015 U.S. {dollars}, its development from 2006 to 2021 was solely 10.5%: From $39,776.18 to $43,945.56.
The biggest year-over-year decline in Canada GDP per capita occurred from 2019 to 2020, when it dropped by 6.32%. The second largest decline year-over-year occurred from 2008 to 2009, when Canada GDP per capita fell by 4.03%; this decline occurred on the peak of the Nice Recession, let unfastened on the world economic system by America’s housing market crash. Earlier than the crash, America’s housing bubble fueled important financial development, as seen within the annual development fee of Canada GDP per capita from 2005 to 2006 of three.12%, and annual development fee from 2006 to 2007 of 5.84% — an annual GDP per capita improve that has not been surpassed since.
Canada GDP per Capita: A Take a look at Canada’s Financial system Over the Years
Utilizing knowledge from the Observatory of Economic Complexity (OEC), we are able to consider how a lot the economic system of Canada has modified over the past 15 years. Since OEC knowledge solely goes as much as 2020 (except you have got the paid Professional model), our 15-year interval right here is from 2005 to 2020. Again in 2005, Canada’s greatest export product was vehicles, which accounted for 10.71% of its whole exports that yr and equal to $37.3 billion. Leaping ahead 15 years to 2020, the exportation of vehicles accounted for under 8.58% of whole export worth, equal to $31.8 billion.
So, what took the place of vehicles as Canada’s high export? As of 2020, crude petroleum has change into Canada’s high export, accounting for 12.72% of whole export worth and equal to $47.2 billion. What’s extra, the exportation of crude petroleum from Canada elevated dramatically as a proportion of whole export worth over the past 15 years: In 2005, crude petroleum exports accounted for under 7.05% of whole export worth, equal to $24.6 billion. Whereas when it comes to percentage-points 12.72% in 2020 versus 7.05% in 2005 could appear small, when it comes to 15-year proportion change, it’s equal to development of 80.5%.
One other notable export that has exploded when it comes to its share of whole export worth is gold. Again in 2005, exports of gold accounted for under 0.92% of whole export worth, or about $3.2 billion. By 2020, nonetheless, exports of gold now account for 3.89% of whole export worth, equal to $14.4 billion. The 15-year proportion change from 0.92% to three.89% is the same as a development fee of 325.14%. Gold now represents Canada’s third largest export as a proportion of whole export worth.
Maybe associated to the expansion within the export of crude petroleum, Canada’s exportation of petroleum gasoline has fallen considerably over the past 15 years. In 2005, petroleum gasoline accounted for 9.12% of Canada’s whole export worth, equal to $9.6 billion. By 2020, nonetheless, exports of petroleum gasoline accounted for a mere 1.86% of whole export worth, equal to roughly $6.9 billion.
The locations of Canada’s exports have additionally markedly modified over the past 15 years. The U.S. remains to be Canada’s high export vacation spot, however in 2005 exports to the U.S. accounted for 81.95% of whole export worth, equal to roughly $285.6 billion. By 2020, exports to the U.S. accounted for 71.24% of whole export worth, equal to roughly $264.2 billion. In the meantime, exports to China have elevated considerably as a share of Canada’s whole export worth: From just one.84% ($6.4 billion) in 2005, as much as 5.2% ($19.3 billion) in 2020. Certainly, China has overtaken the UK and Japan as certainly one of Canada’s high locations for exports.
The change in Canada’s exports over the past 15 years, particularly the huge improve in crude petroleum because the now preeminent export, might be associated to a different improvement: A relative decline in Canada’s financial complexity. Based mostly on the OEC’s Economic Complexity Indicators (ECI), over the past 20 years, the Canadian economic system has change into comparatively much less complicated, dropping from 18th place in 2000 to 29th in 2020 within the ECI rank (the present nation ECI rankings run from 1st place to 136th). Canada isn’t alone amongst “developed” nations which have witnessed a relative decline in financial complexity: For instance, the U.Okay. dropped from 6th place in 2000 to 13th in 2020; Denmark fell from 14th place in 2000 to 27th in 2020; and the Netherlands declined from 11th place in 2000 to 22nd in 2020.
