Canada''s Economy at the Time of the Country''s 150th Anniversary
Since the beginning of the 21st century, the Canadian economy has gone through dramatic transformation. Until mid-2014 Canada's resource sector was booming while most manufacturing industries were shrinking. In about 15 years when "newly industrialized" countries like China and India were demonstrating big demand for energy and raw materials, the proportion of these goods in Canada's exports has gone up from 40 to about 60%. However, with a sharp decline in oil prices and falling demand for metals and other basic commodities, the resource boom has come to an end. Due to external shocks and internal problems Canada's GDP was growing in 2015-2016 at the slowest pace in 60 years, excluding periods of recessions. Private investment fell about 7% in both years. Household debt is now bigger than the GDP, for the first time ever. Leading analysts warn that Canada's economy "could take 15 years to reinvent itself", creating new markets with new products and new manufacturing capability. The long-term strategy of Canada's government is based on massive investment in building and maintaining public infrastructure. No less than $125 bln will be allocated over 10 years. The plan is supported by the regional governments and municipalities, as well as the business community. It was also endorsed by both OECD and IMF. At the same time, relatively big federal budget deficits amounting to about $30 bln a year are the most controversial and potentially dangerous problem.