Canada's Economy is Higher than Russia, Mexico, Spain and Australia

Canada's Economy is Higher than Russia, Mexico, Spain and Australia
PART I: Introduction
Executive Summary
According to the World Economic Outlook Database, Canada holds the eighth position in the economic world rank with a Gross Domestic Product (GDP) of 2.221 trillion. This is two-thirds of the United Kingdom and France’s economy, holding sixth and seventh positions, respectively (International Monetary Fund, 2022). Canada's economy is higher than that of Russia, Mexico, Spain, and Australia. Consequently, this makes Canada the second largest economy in North America and the third largest in the Americas, behind Brazil. Consequently, it creates an exciting dynamic to understand the economic mechanics of a country bordering the largest economy in the world, the United States. It is the second and third largest economy in North and entire America, respectively.
This paper identifies and analyzes the critical macroeconomic variables defining Canada’s economy. The following objectives will guide the study:
* Identifying the key macroeconomic variables in Canada.
* Analyzing the macroeconomic variables.
* Establishing the implications from the synthesis of the analysis.
* Providing recommendations, views, and opinions on the Canadian economy.
By investigating the above objectives, the paper will present an in-depth understanding of the Canadian economy while projecting future trajectories.
The paper will be organized into four sections. The introduction section gives the study background, goals, overview, and introduction to the study area. The methodology section will provide a look into the concepts, models, and theories that will be used in the analysis approach. The section will also include a look into the data types collected and used in the study. The analysis section will include a detailed analysis and synthesis of the macroeconomic variables. The analysis and synthesis will allow for a theoretical prediction and empirical validation. The synthesis will guide the reflections in the conclusion section. The conclusion section will also include the achievements of the study, shortcomings, and implications of the findings.
Background of the Study
According to the International Monetary Fund (IMF) (2022), Canada is the eighth biggest economy on the planet, with a 2022 Gross Domestic Product of $2.221 trillion. Canada's population is approximately 39 million, which places the per capita production at $55,000. Resultantly, this is the twentieth rank globally. Canada, an oil and energy mining force, has the fourth-most elevated assessed worth of regular assets of $33.2 trillion. The country invests in mining, refining, and exporting petroleum products. The World Bank (2022) also places Canada as a low corruption zone with high trading power. Moreover, Canada has excellent ease in doing business and is ranked higher than its neighbor, the United States of America. Ultimately, Canada has a moderately low degree of pay divergence.
Canada is located in North America and spans over three domains and ten provinces. It is among the few countries with access to two oceans and three trading shores: The Atlantic and the Pacific Oceans. Canada is the second largest country, with over 9.98 million Km2. Canada has four metropolitan regions: Ottawa, the capital city, Vancouver, Montreal, and Toronto. Like the United States, Canada's residents include the natives and immigrants, including the French, English, and some Spanish and Portuguese. During the 16th century, the French surrendered their regions in the North American continent. Canada was formed as a national state in 1867 (Government of Canada, 2022). This was the first step to independence as a British Colony and sparked economic, social, cultural, and political growth. The 1982 Canada Act and the 1931 Statute of Westminster ultimately ended the United Kingdom's rule.
The Government of Canada (2022) notes that since the mid-twentieth century, the development of Canada's mining, administration, services, and manufacturing has changed the country from a generally provincial economy to a modern and industrial one. In the same way, as other created nations, the Canadian economy is overwhelmed by the help business, which utilizes around 3/4 of the country's workforce. Among created nations, Canada has a curiously significant essential area, of which the ranger service and oil enterprises are the most noticeable. Canada's economy is exceptionally reliant upon worldwide exchange with commodities and imports of labor and products, each containing around 33 percent of the Gross Domestic Product. Britain, China, and the United States are the country's three most prominent export and import countries (Government of Canada, 2022). Its most significant ventures contributing the most to the Gross Domestic Product are petroleum mining, refining, export, rental, manufacturing, real estate, and leasing.
The manufacturing industry in Canada includes the production of synthetic and physical-chemical materials and their conversion into new items. These items may either be merchandise for utilization or semi-completed products in assembling processes. Canada's mining, quarrying, and oil and gas extraction industry is fundamentally involved in extracting minerals. The business is overwhelmed by oil and gas extraction, yet different mining movements incorporate mining coal and metals, including nickel, silver, gold, and copper. Stone, sand, rock, dirt, ceramic mining, and quarrying are also important for the business and digging for potash.
PART II: Methodology
Based on the above, this study will focus on the following macroeconomic variables: Unemployment rate, average consumer spending, and Gross Domestic Product. The study will implement the Phillips Curve analysis theory, which indicates the relationship between the unemployment rate and changes in nominal salaries and wages (Blanchard & Johnson, 2012). Phillips saw that as, except for the long stretches of strangely huge and quick expansions in import costs, the pace of progress in wages could be made sense of by the degree of joblessness. An environment of low joblessness will make bosses bid compensation up with an end goal to draw better representatives from different organizations. On the other hand, states of high joblessness take out the requirement for such serious offering; accordingly, the pace of progress in paid remuneration will be lower.
The data required will include a 20-year quinquennial (5-year) interval for all the variables: Unemployment rate, average consumer spending, and Gross Domestic Product. The study period will be from the year 2000 to the year 2022. The aspects covered will include the 2008 economic crash and the 2020-2021 Covid-19 pandemic. The Phillips Curve analysis will give an interesting view of Canada's fare during these periods. The sources of data will include the World Bank database (2022), Canism-statcan.com (2022), World Economic Outlook Database (2022), and other secondary literature on the Canadian economy.
The Phillips curve recommends there is a converse connection between expansion and joblessness. This proposes policymakers have a decision between focusing on expansion or joblessness. During the mid-20th century, the Phillips bend investigation proposed a compromise, and policymakers could request the board, financial, and money-related strategy to attempt to impact the pace of monetary development and expansion. For instance, policymakers could invigorate total interest assuming high joblessness and low expansion. This would assist with diminishing joblessness yet goal a higher pace of expansion. The eagerness to consider a higher expansion rate recommend strategy creators feel that the compromise of higher expansion merits the advantage of lower joblessness. Be that as it may, not all market analysts concur we ought to permit the expansion focus to increment. Indeed, when one permits expansion to increment, inflationary tensions will become engrained, and financial arrangements will lose believability. The banks would be reluctant to endure increased inflation.
If the economy is working under the full limit, a huge expansion in total interest will probably cause a decrease in joblessness and higher expansion. Most financial specialists would concur that temporarily, there can be a compromise between joblessness and expansion. In any case, whether this strategy is substantial as long as possible is a conflict. An economic researcher would generally contend the compromise will demonstrate the present moment, and we will get an expansion. Monetarists put more prominent weight on the inventory side of the economy. In the ongoing financial environment, numerous Central Banks and policymakers are weighing how much significance they should provide for decreasing joblessness and expansion. For instance, the Federal Reserve is thinking about utilizing financial strategy to accomplish a joblessness target and an eagerness to acknowledge higher expansion.
The idea driving the Phillips curve expresses the adjustment of joblessness inside an economy typically affects wages. The reverse connection between joblessness and consumer spending or higher wages is portrayed as a descending slanting, inward bend, with unemployment on the X axis and an increase in wages on the X-Axis. More consumer spending indicates a low unemployment rate and the other way around. On the other hand, an emphasis on diminishing joblessness likewise expands expansion and the other way around. The presentation of aspects such as stagflation in the Phillips bend drove financial experts to look all the more profoundly at the job of assumptions in the connection between joblessness and wage increase. Since laborers and customers can adjust their assumptions regarding future expansion rates in light of current paces of expansion and joblessness, the opposite connection between expansion and joblessness could hold short term.
PART III: Analysis
2000-2005 Analysis
In this section, the study will present the Phillips Curve Analysis (PC) of Canada's economy from 2000 to 2005. To establish this, the annual wages rate is compared to the unemployment rate annually.
Variable/Years

2000

2001

2002

2003

2004

2005

Unemployment rate (%)

6.833

7.225

7.667

7.583

7.15

6.767

Employment (Millions)

14.766

14.938

15.284

15.654

15.923

16.128

Average consumer spending (%)

2.719

2.525

2.258

2.759

1.857

2.214

Average Income

43,900

43,900...