Analysis Of Balance Of Payment Of Canada Economics Essay
A balance of payments ( BOP ) sheet is an accounting record of all pecuniary minutess between a state and the remainder of the universe. These minutess include payments for the state ‘s exports and imports of goods, services, and fiscal capital, every bit good as fiscal transportations. The BOP summarizes international minutess for a specific period, normally a twelvemonth, and is prepared in a individual currency, typically the domestic currency for the state concerned. Beginnings of financess for a state, such as exports or the grosss of loans and investings, are recorded as positive or excess points. Uses of financess, such as for imports or to put in foreign states, are recorded as a negative or shortage point.
When all constituents of the BOP sheet are included it must equilibrate – that is, it must sum to zero – there can be no overall excess or shortage. For illustration, if a state is importing more than it exports, its trade balance will be in shortage, but the deficit will hold to be counter balanced in other ways – such as by financess earned from its foreign investings, by running down militias or by having loans from other states
The Balance of Payments consists of three chief subdivisions:
Current Account ( CA )
The current history ( CA ) of the BOP is a record of the trade in goods, in services, and of one-sided transportations between a state and the remainder of the universe.
Merchandise histories contains trade in goods. Net ware exports is frequently called the Balance of Trade.
Trade in services or ‘invisibles ‘ :
Labour services ( e.g. confer withing ) , insurance, travel and banking, renting fees.
Dividends and involvement income ( from “ leasing of money ” )
Unilateral transportations:
Payments made abroad or received from abroad for which there is no corresponding international flow of goods or services. Examples: development assistance, gifts, and rewards repatriated by foreign workers.
Capital Account ( KA )
The capital history is a record of the inward and outward investing and amortisation flows between a state and the remainder of the universe. The capital minutess recorded include those that result from the purchase or sale of existent or fiscal assets. This history includes following secondary histories:
Direct investing
Portfolio investing
Derivative fiscal instruments
Official Militias Account
Official militias include gold, authorities retentions of foreign currencies ( largely in the signifier of commercial paper, T-bills, and bonds ) , money deposited at the IMF, and Special Drawing Rights ( SDRs ) with the I.M.F.
Entries in Bop: Increases if RFX are a usage of financess, lessenings of RFX are a beginning of financess.
Statistical Discrepancy / Errors and Omissions
aˆ? Differences in the timing between the day of the month on which a dealing takes topographic point and the day of the month on which it is recorded.
aˆ? Estimating points such as outgo on travel and
aˆ? Illegal or unreported minutess
a?†RFX = CAestimate + KAestimate + E & A ; O
Balance Of Payments
Beginnings Uses Balance Account
( Beginnings Minus Uses )
1. Current Minutess
aˆ? Exports Of Goods aˆ? Imports Of Goods aˆ? Trade Balance,
aˆ? Exports Of Services aˆ? Imports Of Services aˆ? ‘Invisibles ‘ Balance,
aˆ? Inward Unilateral aˆ? Outward Unilateral aˆ? Net Inward Transfers,
Transportations Transportations
aˆ? Private aˆ? Private
aˆ? Public aˆ? Public
CA = Current Account Balance
= Net Inflow From
Current Minutess
2. Capital Minutess
aˆ? Inward Portfolio aˆ? Outward Portfolio aˆ? Net Inward Investment
Investing Investing
aˆ? Short Term aˆ? Short Term
aˆ? Long Term aˆ? Long Term
aˆ? Inward Direct aˆ? Outward Direct aˆ? Net Inward Investment
Investing Investing
KA = Capital Account Balance
= Net Inflow From
Capital Minutess
3. Central Bank Transactions And Errors And Omissions
aˆ?Decreases In Reserves aˆ? Increases In Reserves aˆ? Net Decreases In Reserves,
( – ) a?†RFX
aˆ?Unrecorded Inflows aˆ? Unrecorded Outflows aˆ? Net Mistakes And Omissions
( E & A ; O )
Grand Total of BOP: 0= CA + KA – a?†RFX + E & A ; O
ABOUT CANADA:
A land of huge distances and rich natural resources, Canada became a autonomous rule in 1867 while retaining ties to the British Crown. Economically and technologically the state has developed in analogue with the US, its neighbor to the south across an unfortified boundary line. Canada faces the political challenges of run intoing public demands for quality betterments in wellness attention and instruction services, every bit good as reacting to separatist concerns in preponderantly francophone Quebec. Canada besides aims to develop its diverse energy resources while keeping its committedness to the environment.
Capital City: Ottawa ( -5 GMT )
Currency: Canadian dollar ( CAD ) ( convert )
Languages: English ( official ) 58.8 % , French ( official ) 21.6 % , other 19.6 %
Naming Code: 1
Voltage: 120
Religions: Roman Catholic 42.6 % , Protestant 23.3 % ( including United Church 9.5 % , Anglican 6.8 % , Baptist 2.4 % , Lutheran 2 % ) , other Christian 4.4 % , Muslim 1.9 % , other and unspecified 11.8 % , none 16 %
Main Airports
Calgary ( YYC ) , Montreal ( YUL ) , Ottawa ( YOW )
U.S. Embassy
Ottawa, Ontario, Canada
Tel: 613.688.5335
hypertext transfer protocol: //canada.usembassy.gov/content/index.asp
Canada: Statistics
Economy:
GDP – buying power para:
$ 1.29 trillion ( 2009 est. )
GDP – existent growing rate:
-2.40 % ( 2009 est. )
GDP – per capita: buying power parity:1
$ 39,078.00 ( 2008 est. )
GDP – composing by sector:2
agribusiness: 2.10 %
industry: 31.20 %
fabrication: 16.50 %
services: 66.70 %
( 2003 est. )
Industrial production growing rate:
-8.00 % ( 2009 est. )
Household income or ingestion by per centum share:1
Lowest 10 % : NA %
lowest 20 % : NA %
2nd 20 % : NA %
3rd 20 % : NA %
4th 20 % : NA %
highest 10 % : NA %
highest 20 % : NA %
Inflation rate ( consumer monetary values ) :
0.20 % ( 2009 est. )
Labour force:
18.40 million ( 2009 est. )
Unemployment rate:
8.50 % ( 2009 est. )
Budget:
Grosss: $ 514.50 billion
outgos: $ 547.20 billion
( 2009 est. )
Exports:
$ 298.50 billion ( 2009 est. )
Exports – spouses:
US 77.7 % , UK 2.7 % , Japan 2.3 % ( 2008 )
Imports:
$ 305.20 billion ( 2009 est. )
Imports – spouses:
US 52.4 % , China 9.8 % , Mexico 4.1 % ( 2008 )
Debt – external:
$ 833.80 billion ( 2009 est. )
Distribution of Family Income – GINI Index:
32.10 % ( 2009 est. )
Electricity Production:
620.70 billion KWh ( 2009 est. )
Electricity Consumption:
536.10 billion KWh ( 2009 est. )
Electricity Exports:
55.73 billion KWh ( 2009 est. )
Electricity Imports:
23.50 billion KWh ( 2009 est. )
Oil Production:
3.35 million bbl/day ( 2009 est. )
Oil Consumption:
2.26 million bbl/day ( 2009 est. )
Oil Exports:
2.42 million bbl/day ( 2009 est. )
Oil Imports:
1.17 million bbl/day ( 2009 est. )
Oil Proved Militias:
178.10 billion Bbl ( 2009 est. )
Natural Gas Production:
170.90 billion coppers m ( 2009 est. )
Natural Gas Consumption:
82.93 billion coppers m ( 2009 est. )
Natural Gas Exports:
102.80 billion coppers m ( 2009 est. )
Natural Gas Imports:
14.84 billion coppers m ( 2009 est. )
Natural Gas Proved Militias:
1.64 trillion coppers m ( 2009 est. )
RISK ASSESSMENT:
State Rating
Rating: A2
Business Climate Rating
Rating: A1
Peoples:
Population:
33.49 million ( 2009 est. )
Population growing rate:
0.82 % ( 2009 est. )
Population below Poverty Line:
10.00 % ( 2009 est. )
Infant mortality rate:
5.04 deaths/1,000 unrecorded births ( 2009 est. )
Life anticipation at birth:1
Entire population: 79.76 old ages
male: 77.00 old ages
female: 82.66 old ages
( 2004 est. )
Entire birthrate rate:
1.58 kids born/woman ( 2009 est. )
Cultural groups:
British Isles origin 28 % , Gallic origin 23 % , other European 15 % , Amerindian 2 % , other, largely Asiatic, African, Arab 6 % , assorted background 26 %
Nationality:
Noun: Canadian ( s ) adjective: Canadian
Religions:
Roman Catholic 42.6 % , Protestant 23.3 % ( including United Church 9.5 % , Anglican 6.8 % , Baptist 2.4 % , Lutheran 2 % ) , other Christian 4.4 % , Muslim 1.9 % , other and unspecified 11.8 % , none 16 % ( 2001 nose count )
Languages:
English ( official ) 58.8 % , French ( official ) 21.6 % , other 19.6 % ( 2006 Census )
Literacy:
Entire population: NA %
male: NA %
female: NA %
HIV/AIDS – Adult Prevalence Rate:
0.40 ( 2009 est. )
Geography:
Location:
Northern North America, surrounding the North Atlantic Ocean on the E, North Pacific Ocean on the West, and the Arctic Ocean on the North, North of the contiguous United states
Area:
Entire: 9.98 million sq kilometer
land: 9.09 million sq kilometer
H2O: 891,163.00 sq kilometer
Land boundaries:
entire: 8,893.00 kilometer
boundary line states: US 8,893 kilometer ( includes 2,477 kilometer with Alaska )
Coastline:
202,080.00 kilometer
Climate:
Varies from temperate in south to subarctic and north-polar in north
Terrain:
Largely plains with mountains in West and Lowlandss in sou’-east
Elevation extremes:
Lowest point: Atlantic Ocean 0 m
highest point: Mount Logan 5,959 m
Environment – International Agreements:
Party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulphur 85, Air Pollution-Sulphur 94, Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands signed, but non ratified: Air Pollution-Volatile Organic Compounds, Marine Life Conservation
International Organization Engagement:
ACCT, ADB ( non regional member ) , AFDB ( non regional member ) , APEC, Arctic Council, ARF, ASEAN ( dialogue spouse ) , Australia Group, BIS, C, CDB, CE ( observer ) , EAPC, EBRD, ESA ( collaborating province ) , FAO, G-20, G-7, G-8, G-10, IADB, IAEA, IBRD, ICAO, ICC, ICCT, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM, IPU, ISO, ITSO, ITU, ITUC, MIGA, MINUSTAH, MONUC, NAFTA, NATO, NEA, NSG, OAS, OECD, OIF, OPCW, OSCE, Paris Club, PCA, PIF ( spouse ) , SECI ( observer ) , UN, UNCTAD, UNDOF, UNESCO, UNFICYP, UNHCR, UNMIS, UNRWA, UNTSO, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO, ZC
Technology:
Telephones:
18.25 million ( 2009 est. )
Cellular Telephones:
21.46 million ( 2009 est. )
Internet Country Code:
.ca
Internet Hosts:
7.19 million ( 2009 est. )
ISPs:
760.00 ( 2009 est. )
Internet Users:
25.09 million ( 2009 est. )
Railwaies:
46,688.00 ( 2009 est. )
Highwaies:
1.04 million ( 2009 est. )
Airports:
1,388.00 ( 2009 est. )
Canada: Economy
As an flush, hi-tech industrial society in the trillion-dollar category, Canada resembles the US in its market-oriented economic system, form of production, and flush life criterions. Since World War II, the impressive growing of the fabrication, excavation, and service sectors has transformed the state from a mostly rural economic system into one chiefly industrial and urban. The 1989 US-Canada Free Trade Agreement ( FTA ) and the 1994 North American Free Trade Agreement ( NAFTA ) ( which includes Mexico ) touched off a dramatic addition in trade and economic integrating with the US, its principle trading spouse. Canada enjoys a significant trade excess with the US, which absorbs about 80 % of Canadian exports each twelvemonth. Canada is the US ‘s largest foreign provider of energy, including oil, gas, U, and electric power. Given its great natural resources, skilled labour force, and modern capital works, Canada has enjoyed solid economic growing, and prudent financial direction has produced back-to-back balanced budgets from 1997 to 2007. In 2008, growing slowed aggressively as a consequence of the planetary economic downswing, US lodging slack, immersing car sector demand, and a bead in universe trade good monetary values. Public fundss, excessively, are set to deteriorate for the first clip in a decennary. Tight planetary recognition conditions have further restrained concern and lodging investing, despite the conservative loaning patterns and strong capitalisation that made Canada ‘s major Bankss among the most stable in the universe.
Canada: Trade Statistics
Exports AND IMPORTS OF GOODS:
Balance of International Payments
Following Revision: May 2010
Canada with the World
Beginning: Statistics Canada CANSIM database
( Million Dollars )
2002
2003
2004
2005
2006
2007
2008
2009
Exports of goods
4,14,039
3,99,122
4,29,006
4,50,210
4,53,951
4,63,127
4,89,857
3,69,633
Agricultural and fish merchandises
30,873
29,234
30,675
30,097
31,211
34,421
40,858
37,271
Energy merchandises
49,330
60,521
68,106
86,920
86,801
91,293
1,25,792
79,687
Forestry merchandises
37,246
34,519
39,417
36,447
33,443
29,267
25,659
19,515
Industrial goods and stuffs
70,174
66,806
77,953
84,201
94,207
1,04,792
1,11,511
79,340
Machinery and equipment
97,091
88,676
91,106
93,005
93,253
93,431
92,994
80,524
Automotive merchandises
96,676
87,385
90,389
87,994
82,298
77,306
61,083
43,785
Other consumer goods
17,679
17,187
17,267
17,148
17,811
18,737
18,170
17,942
Particular minutess
8,233
7,689
7,985
8,288
8,732
8,176
8,193
6,399
Other Balance of Payments accommodations
6,737
7,106
6,108
6,110
6,194
5,704
5,597
5,169
A
Imports of goods
3,56,727
3,42,710
3,63,158
3,87,838
4,04,345
4,15,229
4,42,988
3,73,968
Agricultural and fish merchandises
21,780
21,508
21,399
22,041
23,456
25,526
28,511
29,337
Energy merchandises
16,567
19,813
24,782
33,660
34,705
36,749
53,072
33,915
Forestry merchandises
3,138
3,008
3,172
3,133
3,084
2,994
2,869
2,387
Industrial goods and stuffs
68,891
65,272
73,511
78,547
83,945
85,085
91,574
74,934
Machinery and equipment
1,05,947
98,684
1,04,091
1,10,931
1,14,736
1,16,674
1,22,628
1,07,903
Automotive merchandises
81,469
76,492
77,368
78,381
79,845
79,948
71,959
55,273
Other consumer goods
46,474
46,306
47,719
49,484
52,007
54,781
57,522
57,454
Particular minutess
5,974
5,310
4,967
4,650
4,775
5,209
6,001
4,655
Other Balance of Payments accommodations
6,487
6,318
6,149
7,011
7,793
8,262
8,852
8,109
Exports AND IMPORTS OF COMMERICAL SERVICES BY CATEGORY:
Balance of International Payments
Canada with the World
Beginning: Statistics Canada CANSIM database
( Million Dollars )
A
A
A
2002
2003
2004
2005
2006
2007
2008
Entire Services Receipts ( Exports )
63,483
61,781
65,381
67,599
68,669
69,637
70,478
Commercial Servicess:
34,246
35,513
35,765
37,439
38,395
39,627
39,974
Communicationss services
2,362
2,372
2,440
2,371
2,407
2,383
2,446
Telecommunication services
1,473
1,463
1,490
1,373
1,390
1,444
n.a.
Construction services
157
133
166
220
283
328
266
Insurance services
5,090
4,809
4,145
3,890
3,826
4,044
3,816
Other fiscal services
1,528
1,604
1,465
2,362
2,927
3,460
3,315
Computer and information services
3,557
3,910
3,912
4,358
4,871
4,918
4,925
Computer services
3,168
3,464
3,544
3,794
3,882
3,900
4,074
Information services
389
446
368
564
989
1,018
851
Royalties and license fees
3,917
3,930
3,907
3,348
3,599
3,746
3,644
Patents and industrial design
1,639
1,599
1,546
1,219
1,170
1,276
1,315
Hallmarks
84
137
120
112
174
140
132
Franchises
18
19
2
134
154
109
90
Copyrights and related rights
202
281
470
154
125
153
184
Software and other royalties
1,973
1,894
1,770
1,729
1,976
2,068
1,922
Non-financial committees
739
893
685
859
747
999
1,074
Equipment leases
397
411
354
524
512
515
504
Management services
4,740
5,236
5,328
5,244
5,228
5,162
5,571
Legal services
456
505
595
638
631
790
759
Other direction services
4,285
4,731
4,734
4,606
4,597
4,372
4,812
Ad and related services
549
471
492
607
587
692
616
Research and development
2,519
3,249
3,297
3,192
3,251
3,315
3,208
Architectural, technology, and other proficient services
4,075
3,916
4,410
4,917
4,220
4,571
4,912
Architectural and technology services
3,006
2,848
2,912
3,312
2,789
2,887
3,028
Other proficient services
1,068
1,068
1,497
1,605
1,432
1,684
1,884
Environmental services
403
333
368
429
297
284
n.a.
Assorted services to concern
2,621
2,601
2,776
3,042
3,344
3,091
3,190
Assorted concern services
2,071
2,190
2,288
2,637
2,846
2,669
2,835
Tooling and other assorted services
550
410
488
405
498
422
355
Audio-visual services
1,786
1,761
2,160
2,275
2,352
2,162
2,235
Personal, cultural and recreational services
209
217
230
229
242
242
251
A
A
A
A
A
A
A
A
A
A
A
A
A
2002
2003
2004
2005
2006
2007
2008
Entire Services Payments ( imports )
70,707
73,302
76,417
79,654
82,607
88,611
92,977
Commercial Servicess:
36,903
39,109
39,284
39,231
39,653
41,120
41,484
Communicationss services
2,305
2,049
2,143
1,803
1,821
2,041
2,066
Telecommunication services
1,485
1,232
1,365
991
1,034
1,112
n.a.
Construction services
92
119
191
211
117
229
240
Insurance services
6,612
6,900
6,127
6,065
6,183
6,553
6,315
Other fiscal services
2,711
2,729
2,804
3,306
4,189
4,369
3,981
Computer and information services
2,045
2,278
2,210
2,180
2,306
2,674
2,337
Computer services
1,378
1,511
1,543
1,540
1,628
1,761
1,721
Information services
668
766
668
641
679
913
616
Royalties and license fees
7,038
7,830
8,548
8,360
7,914
8,768
9,363
Patents and industrial design
3,760
4,377
4,330
4,603
3,788
3,895
4,259
Hallmarks
719
866
1,248
1,313
1,512
1,659
1,706
Franchises
442
410
501
699
844
1,010
979
Copyrights and related rights
547
708
1,054
374
363
386
445
Software and other royalties
1,570
1,469
1,415
1,371
1,407
1,817
1,974
Non-financial committees
634
772
562
653
627
644
624
Equipment leases
704
859
817
1,071
1,056
1,307
1,386
Management services
4,780
5,210
5,517
5,499
5,328
4,787
5,302
Legal services
595
657
633
690
699
685
881
Other direction services
4,185
4,553
4,884
4,809
4,629
4,102
4,421
Ad and related services
518
548
478
437
393
359
379
Research and development
989
1,148
1,375
1,313
1,257
1,217
1,153
Architectural, technology, and other proficient services
2,151
2,522
2,409
2,319
2,565
2,824
2,872
Architectural and technology services
1,109
1,333
1,424
1,341
1,349
1,366
1,422
Other proficient services
1,041
1,189
985
978
1,216
1,459
1,450
Environmental services
361
429
406
459
326
371
n.a.
Assorted services to concern
3,817
3,745
3,709
3,790
3,555
3,002
3,018
Assorted concern services
1,259
1,329
1,581
1,923
1,981
1,873
1,935
Tooling and other assorted services
2,558
2,416
2,128
1,867
1,574
1,130
1,084
Audio-visual services
2,322
2,208
2,193
2,019
2,135
2,139
2,226
Personal, cultural and recreational services
185
192
202
206
207
207
221
Canada: Balance OF PAYMENT ACCOUNT
CURRENT ACCOUNT Table:
Balance of International Payments
Following Revision: May 2010
Canada with the World
Beginning: Statistics Canada CANSIM database
( Million Dollars )
Grosss
2002
2003
2004
2005
2006
2007
2008
2009
A
Entire current history
A
5,14,913
4,96,899
5,39,637
5,75,612
5,98,265
6,18,798
6,42,324
5,02,820
A
Goods and services
A
4,77,522
4,60,903
4,94,387
5,17,809
5,22,620
5,32,763
5,60,335
4,36,284
Goods
4,14,039
3,99,122
4,29,006
4,50,210
4,53,951
4,63,127
4,89,857
3,69,633
A
Servicess
A
63,483
61,781
65,381
67,599
68,669
69,637
70,478
66,651
A
Travel
A
16,741
14,776
16,980
16,674
16,610
16,468
16,119
15,592
A
Transportation system
A
11,060
9,942
11,040
11,777
11,862
11,881
12,598
10,501
A
Commercial services
A
34,246
35,513
35,765
37,439
38,395
39,627
39,974
38,682
A
Government services
A
1,435
1,551
1,596
1,709
1,802
1,660
1,787
1,876
A
Investing income
A
30,502
29,253
38,095
49,768
66,086
76,546
71,667
57,806
A
Direct investing income
A
13,766
13,706
21,179
27,579
36,646
41,884
37,590
29,916
A
Portfolio investing income
A
8,859
8,654
10,070
12,373
17,308
22,066
22,198
20,380
A
Other investing income
A
7,877
6,893
6,846
9,816
12,131
12,596
11,880
7,510
A
Current transportations
A
6,890
6,743
7,155
8,035
9,559
9,489
10,322
8,730
Payments
2002
2003
2004
2005
2006
2007
2008
2009
A
Entire current history
A
4,95,135
4,82,250
5,09,800
5,49,710
5,77,932
6,03,192
6,34,209
5,44,123
A
Goods and services
A
4,27,434
4,16,011
4,39,575
4,67,492
4,86,952
5,03,840
5,35,965
4,63,200
Goods
3,56,727
3,42,710
3,63,158
3,87,838
4,04,345
4,15,229
4,42,988
3,73,968
A
Servicess
A
70,707
73,302
76,417
79,654
82,607
88,611
92,977
89,233
A
Travel
A
18,401
18,727
20,237
21,865
23,402
26,511
28,734
27,759
A
Transportation system
A
14,438
14,509
15,919
17,537
18,509
19,842
21,590
19,414
A
Commercial services
A
36,903
39,109
39,284
39,231
39,653
41,120
41,484
40,885
A
Government services
A
965
956
977
1,020
1,042
1,137
1,170
1,175
A
Investing income
A
60,799
59,284
62,399
72,685
79,993
87,880
86,891
70,022
A
Direct investing income
A
21,529
23,765
27,673
36,042
36,479
39,830
40,001
29,011
A
Portfolio investing income
A
30,804
28,816
27,964
28,165
29,074
30,999
31,981
33,045
A
Other investing income
A
8,466
6,702
6,762
8,477
14,440
17,051
14,908
7,966
A
Current transportations
A
6,902
6,955
7,825
9,533
10,987
11,473
11,353
10,900
Balances
2002
2003
2004
2005
2006
2007
2008
2009
A
Entire current history
A
19,778
14,649
29,837
25,902
20,333
15,606
8,115
-41,303
A
Goods and services
A
50,088
44,892
54,811
50,317
35,668
28,924
24,370
-26,917
Goods
57,311
56,413
65,848
62,372
49,606
47,898
46,869
-4,334
A
Servicess
A
-7,224
-11,521
-11,037
-12,055
-13,937
-18,974
-22,499
-22,582
A
Travel
A
-1,659
-3,951
-3,257
-5,191
-6,792
-10,043
-12,615
-12,167
A
Transportation system
A
-3,378
-4,567
-4,879
-5,760
-6,647
-7,961
-8,992
-8,912
A
Commercial services
A
-2,657
-3,596
-3,518
-1,792
-1,258
-1,493
-1,510
-2,203
A
Government services
A
470
594
618
688
760
522
618
701
A
Investing income
A
-30,297
-30,031
-24,304
-22,917
-13,907
-11,334
-15,223
-12,216
A
Direct investing income
A
-7,763
-10,059
-6,494
-8,464
167
2,054
-2,411
905
A
Portfolio investing income
A
-21,945
-20,163
-17,894
-15,792
-11,765
-8,933
-9,783
-12,665
A
Other investing income
A
-589
191
84
1,339
-2,309
-4,455
-3,029
-456
A
Current transportations
A
-12
-212
-670
-1,498
-1,429
-1,984
-1,031
-2,171
Capital AND FINANCIAL ACCOUNT Table:
Capital and Financial Account ; Table 376-0002
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
A
2002
2003
2004
2005
2006
2007
2008
2009
Entire capital and fiscal history, cyberspace flows
-17,208
-15,711
-32,809
-23,350
-22,552
-19,562
-7,122
43,309
Capital history, cyberspace flows
A
4,936
4,225
4,437
5,905
4,288
4,258
4,520
4,117
Fiscal history, cyberspace flows
A
-22,144
-19,935
-37,246
-29,255
-26,840
-23,819
-11,641
39,192
Canadian assets, cyberspace flows
A
-83,631
-67,724
-87,065
-1,10,460
-1,64,630
-1,75,676
-1,03,533
-1,03,872
Canadian direct investing abroad
A
-42,015
-32,118
-56,395
-33,370
-50,367
-64,056
-82,874
-46,297
Canadian portfolio investing
A
-29,319
-19,054
-24,369
-53,455
-78,668
-48,426
13,652
-8,667
Canadian portfolio investing, foreign bonds
A
-6,229
-7,974
-15,290
-29,488
-43,761
-28,902
16,354
9,030
Canadian portfolio investing, foreign stocks
A
-21,253
-7,699
-8,092
-21,878
-28,107
-30,946
-7,914
-15,850
Canadian portfolio investing, foreign money market
-1,837
-3,381
-987
-2,089
-6,800
11,422
5,212
-1,847
Other Canadian investing
A
-12,297
-16,553
-6,300
-23,635
-35,595
-63,194
-34,311
-48,908
Other Canadian investing, loans
A
-8,587
7,614
3,444
7,325
-11,819
-10,237
-626
-17,412
Other Canadian investing, sedimentations
A
5,844
-19,286
-10,661
-15,817
-9,002
-42,202
-37,227
-16,908
Official international militias
A
298
4,693
3,427
-1,653
-1,013
-4,644
-1,711
-11,618
Other assets
A
-9,851
-9,574
-2,510
-13,489
-13,761
-6,111
5,253
-2,970
Canadian liabilities, cyberspace flows
A
61,487
47,789
49,819
81,205
1,37,790
1,51,857
91,891
1,43,064
Foreign direct investing in Canada
A
34,769
10,483
-579
31,132
67,791
1,16,448
47,710
22,092
Foreign portfolio investing
A
18,599
19,714
54,550
13,136
31,388
-31,590
29,057
1,09,367
Foreign portfolio investing, Canadian bonds
A
18,297
7,870
19,238
3,481
16,863
11,548
15,179
82,500
Foreign portfolio investing, Canadian stocks
A
-1,531
13,491
35,742
9,133
10,814
-41,994
2,746
26,202
Foreign portfolio investing, Canadian money market
1,833
-1,646
-429
522
3,711
-1,143
11,132
665
Other liabilities
A
8,119
17,592
-4,152
36,937
38,611
66,999
15,124
11,605
Government of Canada demand liabilities
A
11
-253
-103
-127
-68
-71
360
-384
Short-run payables to non-residents
A
593
-1,607
280
1,443
484
-834
581
-128
Liabilitiess other than Government demand liabilities and short-run payables to non-residents
-7,449
-1,043
-1,766
678
107
6,255
-2,397
9,927
Statistical disagreement and Inter-area transportations
-2,570
1,062
2,973
-2,552
2,220
3,955
-994
-2,006
CANADA ‘S Performance: Analysis
The current history records the flow of minutess between Canada and its commercial spouses. The largest constituent of these minutess comprises the exchange of goods and services. The staying two constituents of the current history gaining control the flow of payments and grosss of investing income and current transportations.
CURRENT ACCOUNT BALANCE:
Canada has surplus current history balance from 2002 to 2008 and is declined every twelvemonth from 2004 and go shortage in 2009.
Deficit balance of -41,303 million dollars in 2009 while it has 8,115 million dollars excess balance in 2008.
GOODS AND SERVICES:
There was uninterrupted worsening in trade balance from 2005 to 2009 twelvemonth.
Canada ‘s exports of goods and services less than imports in 2009.
Canada exported 4,36,284 million dollars deserving of goods and services in 2009 compared to 5,60,335 million dollar in 2008 which is lower by -1,24,051.
Imported 4,63,200 million dollar worth of goods and services is less than old twelvemonth imports but it is greater than exports in 2009.
Canada has a shortage balance of 26,917 million dollars of goods and services in 2009.
Servicess have more shortage balance than goods which is -22,582 in instance of services and -4,334 million dollars in instance of goods in current history in 2009.
INVESTMENT INCOME AND CURRENT TRANSFERS BALANCE:
There was a little betterment in the investing income shortage, as it narrowed by 3,007 to -12,216 million dollars in 2009.
Direct investing income has a excess balance of 905 million dollars while it has shortage balance in old twelvemonth that is -2,411 million dollars in 2008.
There was addition in shortage of Portfolio investing income by 2882 million dollars to -12,665 million dollars.
There was another lessening in other income investing shortage by 2573 million dollars to -456 million dollars in 2009 while it was increased in 2007 and thenceforth go worsening.
Increase in current transportation ‘s shortage to -2171 million dollars by 1140 million dollars in 2009.
Main factors which caused a current history shortage in the balance of Payments:
Canada has run current history shortages because the investing chances in the state have far exceeded the nest eggs of Canadian occupants. As a consequence at that place has been a net capital influx which, by seting upward force per unit area on domestic aggregative demand, has caused the existent exchange rate to be sufficiently high to make an surplus of imports over exports precisely equal to the net capital influx plus the debt service shortage. The coveted excess of imports over exports must be equal to the net capital influx plus the debt service shortage as a status of domestic existent goods market equilibrium.
There has been a debt service shortage because a considerable fraction of the capital employed in Canada is owned either straight or indirectly by aliens — aliens ‘ net incomes on this capital must be repatriated abroad every twelvemonth.
Economic crisis:
India ‘s trading spouses experienced negative economic growing so they bought less of our exports, declining the current history.
Inflation:
Due to lift in monetary values of goods and services makes exports less competitory and imports more competitive.A
Capital History:
Capital AND FINANACIAL ACCOUNT BALANCE:
There was uninterrupted in shortage balance of capital and fiscal history from twelvemonth 2002 to 2008.
In 2004 it has maximal shortage balance that is 32,809 million dollars and from 2004 it becomes worsening in following twelvemonth ‘s.
Canada has surplus balance of history in 2009 is 43,309 million dollars.
Fiscal history balance has contributed app. about 10 times than capital history balance to surplus history balance in 2009 and their parts are 39192 and 4117 million dollars.
FOREIGN DIRECT INVESTMENT:
From 2005 Canada increased its foreign direct investing abroad to 2008 but in 2009, it declined.
Canada has 46,297 million dollar foreign investing in abroad which is less than old twelvemonth from 82,874 million dollars
Addition in direct investing in Canada from 2005 that is 31,132 million dollars.
There was maximal investing in Canada by foreign investors in 2006 and 2007 that is 67,791 and 1,16,448 million dollars and in 2009 it reduces.
The value of direct investing in Canada in 2009 is 22,092 million dollars.
FOREIGN PORTFOLIO INVESTMENT:
2002
2003
2004
2005
2006
2007
2008
2009
-29,319
-19,054
-24,369
-53,455
-78,668
-48,426
13,652
-8,667
-6,229
-7,974
-15,290
-29,488
-43,761
-28,902
16,354
9,030
-21,253
-7,699
-8,092
-21,878
-28,107
-30,946
-7,914
-15,850
-1,837
-3,381
-987
-2,089
-6,800
11,422
5,212
-1,847
2002
2003
2004
2005
2006
2007
2008
2009
18,599
19,714
54,550
13,136
31,388
-31,590
29,057
1,09,367
18,297
7,870
19,238
3,481
16,863
11,548
15,179
82,500
-1,531
13,491
35,742
9,133
10,814
-41,994
2,746
26,202
1,833
-1,646
-429
522
3,711
-1,143
11,132
665
OVER ALL BALANCE OF PAYMENT:
2002
2003
2004
2005
2006
2007
2008
2009
Entire current history
19,778
14,649
29,837
25,902
20,333
15,606
8,115
-41,303
Entire capital and fiscal history, cyberspace flows
-17,208
-15,711
-32,809
-23,350
-22,552
-19,562
-7,122
43,309
So, above figure shows that the overall balance becomes negative in 2006 and 2007 because capital and fiscal history balance has more negative than positive balance of current history but in 2008 and 2009 overall balance becomes positive. In this instance current history balance has more positive balance than negative balance of capital and fiscal history balance.
RELATIONSHIP BETWEEN CURRENT ACCOUNT BALANCE AND SAVING AND INVESTMENTS:
The Relationship between current history balance and salvaging & A ; investing can be derived as follows:
Simple national accounting individualities help to cast visible radiation on the macroeconomic determiners of current history fluctuations. For this intent, it is utile to get down with the definition of a state ‘s gross national merchandise in period T:
[ GNP.sub.t ] = [ Y.sub.t ] + [ r.sub.t ] [ B.sub.t ] ,
where [ Y.sub.t ] is the state ‘s gross domestic merchandise and [ r.sub.t ] [ B.sub.t ] denotes the state ‘s net income from abroad, that is, the ex station return [ r.sub.t ] earned on the stock [ B.sub.t ] of net foreign assets come ining period t. A negative value for [ B.sub.t ] indicates that the sum of outstanding assets a state ‘s domestic occupants ain abroad is less than the sum of outstanding assets aliens own in the state, that is, the state is a net debitor counterpart the remainder of the universe. ( 2 ) Equilibrium in the end product market requires that gross domestic production equal the demand for private sector ingestion, C, authorities disbursement, G, investing, I, and net demand from abroad, NX:
[ Y.sub.t ] = [ C.sub.t ] + [ G.sub.t ] + [ I.sub.t ] + N [ X.sub.t ] .
Net demand from abroad is the surplus of exports over imports, or the trade balance.
From the two old individualities it so follows that the current history, CA, conventionally defined as the amount of the trade balance and net income from abroad, can besides be written as the surplus of gross national merchandise over soaking up: ( 3 )
[ CA.sub.t ] = N [ X.sub.t ] + [ r.sub.t ] [ B.sub.t ] = [ GNP.sub.t ] – ( [ C.sub.t ] + [ G.sub.t ] + [ I.sub.t ] ) . ( 1 )
In add-on, note that the difference between a state ‘s national merchandise and private and authorities ingestion is national nest eggs, that is, the amount of private and authorities nest eggs. As a consequence, the current history is besides equal to the difference between national nest eggs, S, and investing:
[ CA.sub.t ] = [ S.sub.t ] – [ I.sub.t ] . ( 2 )
Sing the current history as net exports ( in a wide sense inclusive of net income from abroad ) or as the difference between nest eggs and investing is tantamount from an accounting position. Motions in involvement rates, exchange rates, monetary values, and income will guarantee that the determinations to export and import and to salvage and put, made at a microeconomic degree by a broad assortment of heterogenous economic agents, will fit in the sum. Still, specifying the current history as the difference between nest eggs and investing is more appropriate when seeking to explicate digesting forms in international capital flows.
The preceding individuality besides highlights the linkages between nest eggs and investing and net international capital flows. Savingss over a period of clip Ts are in fact equal to the alteration in wealth from the beginning to the terminal of period t. Given that a state ‘s wealth at the beginning of period T is given by the amount of its stock of capital, [ K.sub.t ] , and net assets from abroad, [ B.sub.t ] , individuality ( 2 ) can be rewritten as follows: ( 4 )
[ CA.sub.t ] = ( [ B.sub.t+1 ] + [ K.sub.t+1 ] – [ B.sub.t ] – [ K.sub.t ] ) – [ I.sub.t ] = [ B.sub.t+1 ] – [ B.sub.t ] , ( 3 )
where usage has been made of the capital accretion equation [ K.sub.t+1 ] – [ K.sub.t ] = [ I.sub.t ] . The individuality says that the current history over a period of clip T is the alteration in the value of net assets vis-a-vis the remainder of the universe. A net influx occurs when the addition in domestic assets held by aliens exceeds the addition in foreign assets held by domestic occupants. In other footings, if domestic nest eggs are deficient to finance domestic investing, the surplus of investing over nest eggs will be financed by nest eggs from abroad. Therefore, the opposite number of a current history shortage is a net influx of capital into the state that increases the state ‘s net adoption place vis-a-vis the remainder of the universe. Conversely, if domestic nest eggs are greater than domestic investing, the surplus will travel to finance investing abroad. The current history excess will ensue in a net escape of capital from the state that will increase the state ‘s net loaning place vis-a-vis the remainder of the universe.
