Economics Assignment: Canadian Economic Analysis - ECO101

This economics assignment analyzes the Canadian economy based on provided articles. It examines the components of Canada's real GDP, highlighting its growth and trends from 2007 to 2018, supported by a graph. The assignment explores the role of international trade in Canadian GDP growth, noting the impact of government expenditure and policies. It also discusses the potential effects of NAFTA termination, identifying which Canadian provinces would be most and least affected. Finally, it assesses the potential contribution of the marijuana business to Canada's economy, considering economists' skepticism about its inclusion in GDP calculations. The assignment uses at least five references to support arguments and follows a question-and-answer format.

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
Name of the University
Author Note

1ECONOMICS ASSIGNMENT
Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................3
Answer 3..........................................................................................................................................3
Answer 4..........................................................................................................................................4
References........................................................................................................................................5

2ECONOMICS ASSIGNMENT
Answer 1
Figure 1: Real GDP growth trend in Canada (2007 – 2018)
Source: (Ceicdata.com, 2019)
The figure 1 states that the real GDP growth has exhibited a strong annual growth rate of
1.7% compared to 1.6% in 2016. Instead of volatile situation in the international market due to
NAFTA agreement with the USA, the strong performance of real GDP asserts the stability in the
economic growth (Globalnews.ca, 2019). According to the researchers, enhancement in the
household expenditure, inventory production and business investment have acted as a driving
force of this improvement in the real GDP growth. Real GDP growth is considered as the most
appropriate determinant of standard of living as this indicator does not consider the impact of the
inflation rate.

3ECONOMICS ASSIGNMENT
Answer 2
As per the statistics, the international trade has been reported to give negligible impact on
the Canadian economy. The considerable size of government expenditure and effectiveness of
the government policies have been able to avert the detrimental impact of the decreasing gas and
oil prices in the international market (Cbc.ca, 2018) . Canada’s reported year-over-year growth
rate has exceeded the IMF’s expected growth rate by around 0.2%. The promising growth of the
export sector has helped the Canadian economy to obtain the position among the top seven
countries of G7 committee.
Answer 3
With the growing fear of termination of NAFTA deal, the export sector of Canada is
expected to receive a negative impact. Canada is considered as a great exporter of food,
agricultural and forestry products to the USA economy.
As far as the article is concerned, Canadian provinces like Ontario will be most affected,
whereas, Alberta, Saskatchew, Newfoundland, Prince Edward Island, Quebec and Manitoba and
Labrador will be least affected by the change in NAFTA.
In terms of the statistics, Ontario has contributed 26% to Canada’s GDP to export
earnings. Manufacturing sector of Ontario is expected to face sizable amount of difficulty on the
face of uncertainty related to NAFTA (Globalnews.ca, 2019). On the other hand, the export
sector of least affected provinces is not majorly dependent on the USA trade. For example,
British Colombia will not receive NAFTA affect as its trading sector is majorly dependent on the
Asian market.

4ECONOMICS ASSIGNMENT
Answer 4
According to the article, the Canadian economy will be strengthening by $8 billion after
finalizing the business of Marijuana business (Inc., 2018). However, the economists are sceptical
about the contribution of the Marijuana business as the earnings from this certain business is
often not included under the GDP earnings.

5ECONOMICS ASSIGNMENT
References
Cbc.ca (2018) Canada tops G7 in latest IMF estimate for 2017 economic growth, No. 2 in 2018 |
CBC News. (2019). CBC. www.cbc.ca/news/business/imf-canada-economy-g7-
1.4347737
Ceicdata.com (2019) https://www.ceicdata.com/en/indicator/canada/real-gdp-growth
Globalnews.ca (2019) Canadian economy grows at 3 per cent in 2017, fastest pace in 6 years.
Global News. https://globalnews.ca/news/4058301/canada-q4-2017-gdp-growth/
Globalnews.ca (2019) These provinces will be most (and least) hurt if NAFTA is terminated:
report. Global News. globalnews.ca/news/4087122/nafta-termination-canada-provinces-
effect-moodys/
Inc., P. (2018). Marijuana will add $8 billion to Canada’s economy — at least on paper, TD says.
Financial Post. hbusiness.financialpost.com/cannabis/marijuana-to-boost-canadas-2019-
gdp-at-least-on-paper-td-says