The Canadian economy is the eighth largest in the world (measured in US dollars at market exchange rates). It is highly integrated with the US economy, which absorbed 79% of its goods exports and was the source of 65% of its goods imports in 2006. Most Canadians live in a narrow strip (160 km wide) north of the US border, making them sensitive to the threat of US economic and cultural domination. Almost 70% of Canadians are monoglot English-speakers; about 15% speak only French but these form a majority in Quebec, Canada’s second-largest and second most populous province. This makes Canada a potentially fragile country, although support for sovereignty is currently on the wane in Quebec.

Foreign trade: On a balance-of-payments basis, merchandise exports rose by just 1.2% to C$459bn (US$374bn) in 2006 as exports to the US, particularly timber, were hit by the contraction in housing activity. Merchandise imports rose by 4.1% to C$404bn. In 2006 the merchandise trade surplus fell by C$10.6bn, to C$54.3bn.

From the Economist Intelligence Unit
Source: Country ViewsWire