21/05/2025
*Economic Comparison: Canada vs United States*
*Overview*
The United States has the world's largest economy, with a GDP of $20.5 trillion, while Canada ranks 10th with a GDP of $1.7 trillion. Here's a breakdown of key economic indicators:
*Key Indicators*
- *GDP per capita*: The US has a higher GDP per capita at $63,000 compared to Canada's $46,000. However, when adjusted for purchasing power parity (PPP), Canada's GDP per capita is $50,000, while the US remains at $63,000.
- *Economic Growth*: The US has a slightly higher 5-year average GDP growth rate at 2.4% compared to Canada's 1.9%.
- *Unemployment Rate*: The US has a lower unemployment rate at 3.9% compared to Canada's 5.9% (although more recent data shows Canada's rate at 6.9% and the US at 4.2% as of April 2025).
- *Inflation*: The US has a higher inflation rate at 2.4% compared to Canada's 0.9% (although more recent data shows Canada's rate at 1.7% and the US at 2.3% as of April 2025).
*Government Finances*
- *Government Debt*: The US has a higher government debt-to-GDP ratio at 105.8% compared to Canada's 90.6% (although more recent data shows Canada's debt-to-GDP ratio at 110.77% and the US at 120.79% in 2024).
- *Government Expenditure*: Canada's government expenditure accounts for 40.5% of its GDP, while the US has a lower ratio at 38.1% (although more recent data shows Canada's expenditure at 44.71% and the US at 37.59% in 2024).
*Other Key Differences*
- *Trade*: Canada's economy is more trade-dependent, with exports and imports accounting for 32.1% and 34.1% of its GDP, respectively. In contrast, the US has a more domestic-focused economy, with exports and imports at 12.2% and 15.3% of its GDP.
- *Taxation*: The US has a higher income tax rate at 37% compared to Canada's 33%. However, Canada's corporate tax rate is lower at 15% compared to the US's 21%