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Recession in Canada
A recession is a temporary period of time when the overall economy declines; it is an expected part of the business cycle. This period usually includes declines in industrial and agricultural production, trade, incomes, stock markets, consumer spending, and levels of employment. In purely technical terms, a recession occurs when two or more successive quarters (six months) show a drop in real gross domestic product (GDP), i.e., the measure of total economic output in the economy after accounting for inflation. In this sense, recessions are broad and can be particularly painful and challenging times for a country.
Toronto-Dominion Bank (TD)
The Toronto-Dominion Bank, commonly known as TD, is the second largest chartered bank in Canada. The Toronto-Dominion Bank is the result of the past mergers of three financial companies: The Bank of Toronto, The Dominion Bank, and Canada Trust. The mergers began in 1955 when The Dominion Bank merged with The Bank of Toronto. This group then acquired Canada Trust in 2000, creating a new entity called TD Canada Trust. Toronto-Dominion Bank is a public company that trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol TD. In 2020, TD registered $43.65 billion in revenue and $11.89 billion in profit and held $1.7 trillion in assets. The bank employs approximately 90,000 people, who serve more than 26.5 million customers.
Bank of Nova Scotia (Scotiabank)
The Bank of Nova Scotia, commonly referred to as “Scotiabank,” is Canada’s third largest chartered bank. Incorporated in 1832, the bank has established itself as Canada’s most international bank through extensive operations throughout Latin America, the Caribbean, Central America and parts of Asia. It is also known as “Canada’s gold bank” because of its dominant position in bullion trading. The bank also operates three other business lines: personal banking, commercial banking, and wealth management. Scotiabank is a public company that trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol BNS and on the Trinidad and Tobago Stock Exchange under the symbol SBTT. In 2020, Scotiabank registered $31.3 billion in revenue and $7.0 billion in profit and held $1,136billion in assets. The bank employs more than 92,000 people, who serve more than 25 million customers around the world.
Economic History of Canada
The economic history of what is now Canada begins with the hunting, farming and trading societies of the Indigenous peoples. Following the arrival of Europeans in the 16th century, the economy has undergone a series of seismic shifts, marked by the early Atlantic fishery, the transcontinental fur trade, then rapid urbanization, industrialization and technological change. Although different industries have come and gone, Canada’s reliance on natural resources — from fur to timber to minerals to oil, and on export markets for these commodities, particularly the United States — has underpinned much of the economy through the centuries and does so still in many regions today.
Statistics Canada is the nation’s central statistical agency. It was established in 1918 as the Dominion Bureau of Statistics and adopted its present name in 1971. Under the Statistics Act of that year, it has the responsibility to “collect, compile, analyse, abstract and publish statistical information relating to the commercial, industrial, financial, social, economic and general activities and condition of the people.” The agency works with government departments to develop integrated social and economic statistics for Canada and the provinces and territories. In addition, Statistics Canada is a scientific research organization that develops methodologies and techniques related to statistics and survey design.
Money in Canada
Money consists of anything that is generally accepted for the settlement of debts or the purchase of goods or services. The evolution of money as a system for regulating society’s economic transactions represented a significant advancement over earlier forms of exchange based on barter, in which goods and services are exchanged for other goods or services. Canadian money has its roots in the Indigenous wampum belts of the East, the early currencies of European settlers and the influence of the United States.
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Royal Bank of Canada (RBC)
Royal Bank of Canada (RBC) was founded in 1864. Today, it is the country’s largest chartered bank and financial institution. It has five divisions: Personal and Commercial Banking, consisting of banking operations in 36 countries around the world; RBC Wealth Management, consisting of investment products and services for retail investors; RBC Capital Markets for international investment banking services; RBC Insurance for individual and group clients; and Investor and Treasury Services, providing custody services and fund administration for international clients. Royal Bank is a public company that trades on the Toronto Stock Exchange, New York Stock Exchange and SIX Swiss Exchange under the symbol RY. In 2020, RBC registered $47.2 billion in revenue and $11.4 billion in profit and held $1.62 trillion in assets. Royal Bank employs more than 86,000 people, who serve 17 million customers.
Bank of Montreal (BMO)
The Bank of Montreal was founded in 1817, making it Canada’s oldest incorporated bank. From its founding to the creation of the Bank of Canada in 1935, the Bank of Montreal served as Canada’s central bank. Today, the various components of the Bank of Montreal are collectively known as BMO Financial Group. BMO is Canada’s fourth largest bank by assets, and the eighth largest in North America. It offers services in three distinct areas — personal and commercial banking, wealth management, and investment banking. BMO is a public company that trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol BMO. In 2020, BMO registered $25.2 billion in revenue and $5.097 billion in profit and held $949.3 billion in assets. BMO employs more than 43,360 people who serve more than 8 million customers across Canada.
Canadian Imperial Bank of Commerce (CIBC)
The Canadian Imperial Bank of Commerce, commonly known as CIBC, is the fifth largest chartered bank in Canada. It was created through the 1961 merger of two Ontario-based banks, the Canadian Bank of Commerce and the Imperial Bank of Canada — the largest merger of two chartered banks in Canada’s history. Today, CIBC operates its business in Canada and abroad through three divisions: retail and business banking, wealth management, and capital markets. CIBC is a public company that trades on the Toronto Stock Exchange and the New York Stock Exchange under the symbol CM. In 2020, CIBC registered $18.7 billion in revenue and $3.8 billion in profit and held $769.6 billion in assets. The bank employs approximately 43,853 people, who serve 10 million customers.
Ottawa Releases Long-Awaited Arctic Development Policy
After extensive consultations with First Nations and territorial governments, the federal government released its policy on developing the Canadian Arctic. It had been in the works since 2017. Eight priorities were identified, with health, infrastructure and economic development leading the way. However, many criticized the policy for not including specifics on how it would be implemented. International law professor and Arctic expert Michael Byers said, “In terms of an actual plan, there’s very little here.”
Canada–US Economic Relations
Economic relations between Canada and the US are of paramount importance to Canada.
The National Policy was a central economic and political strategy of the Conservative Party under Prime Minister John A. Macdonald, and many of his successors in high office. It meant that from 1878 until the Second World War, Canada levied high tariffs on foreign imported goods, to shield Canadian manufacturers from American competition.
International trade is the buying and selling of goods and services between members of different countries. This exchange has been a key part of the Canadian economy since the first settlers came. Canadian settlers depended on exports of resources such as timber and grain (see Timber Trade History; Wheat). In the 20th century, Canada’s exports shifted to services, manufactured goods and commodities such as oil and metals.
Since the 1980s, Canada has signed free trade agreements with dozens of countries to increase global trade and investment.
Canada’s three biggest trading partners are the United States, the European Union and China. The United States is Canada largest trading partner by far. However, trade with China grew quickly in the 2010s, and this trend will likely continue.
Click here for definitions of key terms used in this article.
Mabel Frances Timlin, OC, FRSC, economist, professor (born 6 December 1891 in Forest Junction, Wisconsin; died 19 September 1976 in Saskatoon, SK). Timlin was an influential economist best known for her interpretation of Keynesian economics. Although she became a professor relatively late in her career, Timlin achieved a series of firsts as a Canadian woman in her field. She remained at the University of Saskatchewan throughout her career.
Keynesian Economics in Canada
Keynesian economics is a method of analysing the behaviour of key aggregate economic variables such as output, employment, inflation and interest rates. British economist John Maynard Keynes initially developed this analytic structure (and as a result virtually established the modern field of macroeconomics) during the 1930s, as a method of understanding the Great Depression.
Human Geography and Canada
Human geography studies the relationships between people and the environments in which they live. Within the field of human geography there are five main areas of study. These areas are economic geography, cultural geography, political geography, urban
geography and environmental geography. In Canada, human geographers might study the status of Indigenous languages or
differences between rural and urban Canadians, among many other topics.
General Agreement on Tariffs and Trade (GATT)
The General Agreement on Tariffs and Trade (GATT) was an international trade agreement. It was signed by 23 nations, including Canada, in 1947 and came into effect on 1 January 1948. It was refined over eight rounds of negotiations, which led to the creation of the World Trade Organization (WTO). It replaced the GATT on 1 January 1995. The GATT was focused on trade in goods. It aimed to liberalize trade by reducing tariffs and removing quotas among member countries. Each member of the GATT was expected to open its markets equally to other member nations, removing trade discrimination. The agreements negotiated through GATT reduced average tariffs on industrial goods from 40 per cent (1947) to less than five per cent (1993). It was an early step towards economic globalization.
Statistics is the science concerned with the collection and analysis of numerical information to answer questions wisely. The term also refers to the numerical information that has been collected. Statistics has many applications in Canada, from government censuses and surveys, to decision making in industry, to medical research and technological innovation.