The competitiveness in Canada economy has been bolstered by strong institutional foundations of an open-market system. The rule of law is upheld by an autonomous judiciary and gives a robust protection of property rights. Canada economy opens its gates to global commerce and is supported by an astoundingly efficient regulation.
In the whole western hemisphere, aside from a few countries in the Caribbean, Canada is the sole major parliamentary democracy. Canada continued to cultivate unique social economic (even if it is closely integrated with the economy of the United States) and political institutions as a result.
The country’s economic system is mix of aspects of private enterprise and public enterprise. A lot of the elements of public enterprise were utilized after the end of the Second World War in 1945. One of the elements adopted were the establishment of a far-reaching social welfare system that aims to rectify unfairness in the social and economic institutes.
Canada has one of the highest levels of economic freedom around the world with its private to public property ratio at 60:40. Nowadays, Canada is similar to the U.S. regarding its market-oriented economic system.
According to data from the World Bank, Canada’s GDP, as of 2016 is at 1.53 trillion U.S. Dollars.
The efficiency of the process of business formation and operation is thanks to the transparent regulation system that aids in commercial activity. The responsive regulations in labor lead to the boost of the growth of employment.
The Open Market
On average, the tariff applied on trades is 0.8 percent. There is a limit set for foreign investment by the government on some sectors such as aviation and telecommunications. There are a few financial companies operating in the countries that aren’t banks and runs a in a reasonable business environment and markets for securities are developed.
There is a 33 percent income tax rate for those with income of above $200,000 with the lowest being 15 percent for those with an income of $45,282 or less. Canada also has other taxes like property tax and value-added tax. About 30.8 percent of the total domestic income is due to the total tax burden.