The eighth largest economy in the world, measured in US dollars, Canada is one of the world's wealthiest nations, with an economy dominated by the service industry, having about three quarters of Canadians as employees. With the logging and oil industries being the most important sectors, Canada unusually finds itself among the developed countries, also having a sizable manufacturing sector, with the automobile industry especially important.
At the same time, a large part of the Canadian economy is made up by international trade, which is due mostly to its natural resources. By far Canadas largest trading partner is the USA, which accounts for approximately 76% of exports and 65% of imports, starting with 2007. 1 year earlier, Canada's combined exports and imports ranked 8th among all countries and nations. Canadas economy is mature and diverse, at the same time, and it benefits from an advanced sector of services, natural resources in abundance, rigid management as well as free trade agreements.
As of 2007, its nominal GDP was $1.274 trillion, with growth of 2.7%, due to the countrys change of focus from agriculture to services, which now accounts for nearly 67.9% of GDP. The service industry comprises many sectors, such as the retail sector, financial services, real estate, education, health, high-tech, entertainment, tourism, etc, all of them developing at a rapid rate. Out of the 17,9 million workin g force existing in Canada, the service industry has employed 75%.
The rapid development witnessed by Canada was also due to the free trade agreement with the US in 1989, together with the NAFTA treaty of 1994. Both treaties linked several other key countries to Canada and Canadian economy. Canada ranks among the most developed countries on the Human development index, having a GDP per capita lower than in the US, and a median household income roughly equal to that of the US.
After Russia, Canada is the second-largest country in the world, by land mass and is also the second-largest oil reserves in the world, with its large oil and gas reserves. Though manufacturing is not a dominant sector of the economy, it is an important secondary industry and a significant number of cars and light aircraft are produced here.
Another important factor that brought its contribution to the countrys economic superiority and growth has been its sound fiscal management, which has given Canada a balanced budget for the past decade. Canadas soun d fiscal management has been another major factor contributing to the countrys economic superiority. Prudent management has given Canada a balanced budget throughout the entire last decade.