Canada Canada is one of the most prosperous countries in the world. It considered to be one of the safest places to invest in the world. It is part of the group seven ( G-7) which is a forum of the world's seven most industrialised economies. The Canadian landscape is rich in resources, the financial sector is fundamentally sound and the commodity-backed currency is one of the strongest among developed markets. On top of that, Canada is ranked second with a percentage of 95.8% in the Venture Capital & Private Equity Country Attractiveness Index, in 2014 ranking. There are many advantages that the country specifically holds which bring benefits to investors. These are discussed in a PESTLE ANALYSIS. This PESTLE analysis identifies the issues …show more content…
It has a sovereign as head of state and an elected Prime Minister as head of the government. Canada has a federal system of parliamentary government, where federal, provincial and territorial governments share government responsibilities and functions. The monarchy and the executive, legislative and judicial branches of government carry out federal responsibilities. By any standards, Canada is politically very stable. Its budget deficit is moderate relative to any other jurisdiction. Over the past four years of financial crises, Canada has had the smallest downturn of any of the G7 countries. Tax policy: Canada has the lowest tax rates on new business investment, compared to the other G-7 countries, with 17 percentage points. Note: The chart below is extracted from ‘The Canadian Trade Commissioner Service’ website. The chart on the previous page shows all the tax rates of the G-7 countries. The highlighted in red is the tax rate in Canada which represents the lowest tax rate. The tax rates, shown in the graph, of the G-7 countries are: Japan: 40.7%; US (United States) : 34.8%; U.K (United Kingdom) : …show more content…
ECONOMIC ANALYSIS One of the wealthiest nations of the world, Canada is a member of the Organisation of Economic Cooperation and Development (OECD) and the G-7. Canada’s economy is dominated by the service sector. One of the few nations in the world to be a net to be a net exporter of energy, Canada finds its place amongst the top ten trading nations in the world. GDP Growth rate: The GDP growth rate in Canada is 2.0% annual change (2013) and the GDP is 1.825 trillion USD (2013). This year, the Parliamentary Budget Officer (PBO) released a report titled Economic and Fiscal Outlook 2014. A part of the report describes the GDP growth rate of Canada and the PBO’s estimated the potential and real economic growth through 2018. The chart on the next page which is extracted from the Economic and Fiscal Outlook 2014 report shows the GDP and potential GDP growth. Extracted from the report, this chart shows the GDP growth in 2013 which is 2.0% and the potential GDP growth over the coming years. The PBO drew estimation that the real GDP will grow very roughly over the next two years but also sees a lower potential growth as from 2016. Inflation