Macroeconomics: Trends in GDP Fluctuations in Canada

Running head: MACROECONOMICS
Macroeconomics
Name of the Student
Name of the University
Author’s Note

1MACROECONOMICS
Table of Contents
Introduction......................................................................................................................................2
Historical Background.....................................................................................................................2
Factors causing GDP fluctuations in Canada..................................................................................3
Factors contributing to growth trends in Canada.............................................................................4
Impacts on the nation’s economy....................................................................................................5
Conclusion.......................................................................................................................................6

2MACROECONOMICS
Introduction
The present report provides an overview on the trends in GDP fluctuations in Canada for
the past 10 years. The study also focuses on the factors that contributes to this GDP growth
trend. This paper also highlights on the factors causing GDP fluctuations and its effect on the
nation. The gross domestic product (GDP) of Canada is the measure for evaluating the Canada’s
economy performance over a specified time period (Charnavoki, Valery and Juan 234). Even
though the economy of Canada contracted owing to close- ties with US, this country managed to
recover from such effect of crisis.
Historical Background
The Canada economy is a mixed economy that is dominated by service and
manufacturing industry. The service sector accounts for near around 70% of the economic
activity and is generally led by public administration, real estate service, health care and finance.
In fact, the manufacturing industry accounts for near around 11% of GDP and is led by
fabrication of equipment and transport. The oil as well as lagging sector are two most vital
industries of this primary sector that constitute this nation’s largest export commodity. This
country has the fourth largest estimated value of the natural resources of around US $33.2 trillion
as of the year 2016. Today this country closely resembles with US in market –oriented economic
system as well as production pattern. In addition to this, international trade usually makes up
biggest part of Canadian economy specifically its natural resources. US is its biggest trading
partner that accounts for large amount of exports and imports. However, export of natural
resources integrates this economy closely into international economy (Rodrik 9).
Factors causing GDP fluctuations in Canada
The different factors that causes GDP fluctuations in Canadian economy are-