In total, these intermediaries produced services worth $64.8 billion. In 2006, the growth rate was just below the annual average of 6.1% since the survey began 10 years ago.

The industry performed favourably, thanks to volume growth in retail banking, strong trading revenues and significant merger and acquisition fees. However, income came under pressure from heightened competition and a narrowing interest-rate spread on lending products.

Net interest income rose 3.1% to $32.8 billion, largely the result of increased spreads on deposits and higher volumes in personal and business lending. Partially offsetting this growth was a drop in treasury and investment banking services, attributed to higher funding costs for equity trading strategies and lower new issue activity (that is, a lower volume of initial public offerings on Canadian exchanges).

Non-interest income rose 6.9% to $32.0 billion. Net interest income has outweighed non-interest income in this industry. However, strong growth in fee-based income over the past 10 years has almost closed this gap. In 2006, investment management and mutual fund fees grew significantly, as did credit card, deposit and payments services.

In 2006, deposit-accepting intermediaries increased their provisions for credit losses by 12.3% to $2.8 billion. These provisions reflected expected changes in losses from impaired loans and other credit instruments.

Most deposit-accepting intermediaries raised their provisions because of elevated lending volumes and higher write-offs on both personal and business loans, but this was not the case for all.

Retail banking volumes continue to thrive

The value of services in the retail banking segment rose 6.5% in 2006, due to growth in both net interest income (+4.9%) and non-interest income (+11.0%). These retail services accounted for 61.7% of the total value of services produced, emphasizing their position as the primary income-generating activity for deposit-accepting intermediaries.

Low long-term interest rates continued to fuel strong demand for both residential mortgages and personal loans. The labour market also contributed to this demand, as did a solid yet moderating housing market. Higher volumes and improved spreads on deposits were also widely reported.

This business segment has historically been mostly interest-based. Net interest income continued to contribute the majority (71.6%) of the value of services produced by retail banking. Nevertheless, this proportion has been steadily decreasing for the past five years, as fee-based income has become increasingly significant in the retail market.

Treasury and investment banking activities remain flat

The value of treasury and investment banking services remained flat in 2006 at $11.8 billion. They accounted for 18.3% of the value of total services produced.

Higher merger and acquisition fees and strong trading revenue could not compensate for weakened equity underwriting activity. However, this portfolio continues to be the second largest contributor to services produced for the industry.

Non-interest income rose 4.0% to $11.6 billion. Growth in investment management and mutual fund fees were factors in this increase, thanks to more money going into funds and higher-valued securities within the managed portfolios.

Net interest income dropped to $207 million due to disappointing equity-origination activity and higher trading-related funding costs. In addition, financial settlements and other losses against foreign operations were charged against net interest income in Canada.

Strong year for electronic financial services

The electronic financial services portfolio produced services worth $7.4 billion in 2006, an 8.7% increase from 2005. This portfolio has continued to be the fastest growing business segment of deposit-accepting intermediaries since the beginning of the survey.

Net interest income increased 11.3%, while non-interest income rose at a somewhat slower pace (+7.8%). Increased credit card balances and volumes were factors in this growth. Other factors included gains in payments services and, in many cases, expanded branch and automated banking machine networks.

Non-interest-related activities accounted for the majority (72.4%) of the value of services produced in this portfolio. Nevertheless, this was still down from the peak of 89.5% in 1999.

Electronic financial services are the third largest contributor to income for deposit-accepting intermediaries. In 2006, they accounted for 11.4% of total services produced, a proportion which has been increasing steadily since the inception of the survey. This portfolio serves as a means of delivery to extend the reach of other financial products and services.

Moderate growth in corporate and institutional finance portfolio

The value of services produced by corporate and institutional finance activities rose 7.0% to $4.4 billion in 2006, continuing the upward movement established in 2005. The corporate and institutional finance segment accounted for 6.8% of the total value of services produced.

Non-interest income climbed 13.5% to $2.6 billion, but was offset by a drop of 1.2% in net interest income to $1.8 billion.

Solid business loan demand and higher deposit volumes were partially offset by lower spreads on corporate loans and increased securitization of assets. Gains and losses from securitization are recorded as non-interest income, and thus have a negative impact on results for net interest income.

Decline in fiduciary services

The value of fiduciary services declined 13.7% to $1.2 billion in 2006, as fiduciary services continued to be incorporated under the treasury and investment banking portfolio.

Growth in customer assets under management and administration was widely reported in 2006, as were higher spreads on personal investment products.

Fiduciary services have traditionally represented a small portion of the overall value of services produced by deposit-accepting intermediaries. In 2006, they accounted for only 1.9%.

Value of services produced by deposit-accepting intermediaries
	Net interest income			Non-interest income			Value of services produced in Canada1
	2005	2006	2005 to 2006	2005	2006	2005 to 2006	2005	2006	2005 to 2006
	$ millions		% change	$ millions		% change	$ millions		% change
Retail banking services	27,323	28,650	4.9	10,239	11,365	11.0	37,562	40,014	6.5
Corporate and institutional finance	1,819	1,797	-1.2	2,271	2,579	13.5	4,090	4,375	7.0
Electronic financial services2	1,827	2,033	11.3	4,946	5,332	7.8	6,773	7,365	8.7
Treasury and investment banking3	716	207	-71.1	11,177	11,622	4.0	11,893	11,829	-0.5
Fiduciary services	97	93	-4.5	1,323	1,132	-14.4	1,420	1,225	-13.7
Total4	31,782	32,778	3.1	29,956	32,030	6.9	61,738	64,808	5.0
1. The value of services produced is not reduced by provisions for credit losses. 2. See Note to readers. 3. Certain international treasury transactions, which are netted out in consolidated world results, can significantly affect the Canadian data reported by multinational respondents. 4. Figures may not add up to totals because of rounding.

Distribution of income by activity of deposit-accepting intermediaries
	Net interest income			Non-interest income			Value of services produced in Canada
	2005	2006	2005 to 2006	2005	2006	2005 to 2006	2005	2006	2005 to 2006
	%		% point change	%		% point change	%		% point change
Retail banking services	86.0	87.4	1.4	34.2	35.5	1.3	60.8	61.7	0.9
Corporate and institutional finance	5.7	5.5	-0.2	7.6	8.1	0.5	6.6	6.8	0.2
Electronic financial services1	5.7	6.2	0.5	16.5	16.6	0.1	11.0	11.4	0.4
Treasury and investment banking2	2.3	0.6	-1.7	37.3	36.3	-1.0	19.3	18.3	-1.0
Fiduciary services	0.3	0.3	0.0	4.4	3.5	-0.9	2.3	1.9	-0.4
Total3	100.0	100.0	0.0	100.0	100.0	0.0	100.0	100.0	0.0
1. See Note to readers. 2. Certain international treasury transactions, which are netted out in consolidated world results, can significantly affect the Canadian data reported by multinational respondents. 3. Figures may not add up to totals because of rounding.

Type of income by type of activity
	Proportion of value of services produced in Canada
	Net interest income			Non-interest income
	2005	2006	2005 to 2006	2005	2006	2005 to 2006
	%		% point change	%		% point change
Retail banking services	72.7	71.6	-1.1	27.3	28.4	1.1
Corporate and institutional finance	44.5	41.1	-3.4	55.5	58.9	3.4
Electronic financial services1	27.0	27.6	0.6	73.0	72.4	-0.6
Treasury and investment banking2	6.0	1.7	-4.3	94.0	98.3	4.3
Fiduciary services	6.8	7.6	0.8	93.2	92.4	-0.8
Total	51.5	50.6	-0.9	48.5	49.4	0.9
1. See Note to readers. 2. Certain international treasury transactions, which are netted out in consolidated world results, can significantly affect the Canadian data reported by multinational respondents.

Note to readers

The annual Survey of Deposit-accepting Intermediaries covers the Canadian-based activities of the principal deposit-accepting intermediaries, namely chartered banks, trust companies, caisses populaires and credit unions. The report does not cover foreign operations.

Retail banking services (chartered banks, trust companies, caisses populaires and credit unions) cover all financial services to individuals and to small- and medium-sized businesses through a traditional branch network.

Corporate and institutional finance services cover financing and operating services for institutions and large corporations. They include trade, export and project financing and syndicated lending.

Electronic financial services cover services to individuals, businesses and institutions through networks of banking machines, debit and credit cards, telephone banking and the Internet. Some of the respondents were unable to provide separate estimates for their activities in electronic financial services. This may result in some under-estimation of the values for these services and over-estimation for retail banking services. The aggregated totals including these two segments remain strong.

Treasury and investment banking services: Treasury banking manages the funds of the deposit-accepting intermediary, itself. Investment banking covers services to individuals, corporations and institutions such as securities brokerage, mutual fund management, corporate financing and other investment services.

Fiduciary services refer to all services provided when acting as a trustee or agent such as record-keeping, custodial and performance evaluation services for personal trusts, pension funds, corporate and institutional investments and group Registered Retirement Savings Plans.

Net interest income is the difference between interest income and interest expenses. Interest income covers all interest from loans, titles and deposits of deposit-accepting intermediaries. Interest expenses cover interest paid on deposits, subordinated debentures and other interest costs.

Non-interest income covers all sources of revenue other than interest income. Examples include revenue from brokerage and other securities services, credit services, deposit and payment services charges, trading, mutual fund management, card services, foreign exchange, securitization activities and trans-sectoral income.

Value of services produced is the sum of net interest and non-interest income. This value is not to be confused with service charges.

A more detailed analysis is available in Canadian Economic Accounts Quarterly Review.

Consumer spending eased in the third quarter from its robust showing in the second, while retailers and wholesalers added significantly to their inventories. Imports outpaced exports by a wide margin, as the Canadian dollar once again appreciated sharply (+5.1%) against its US counterpart.

Businesses took advantage of lower prices to invest heavily in machinery and equipment. Housing investment remained strong, propelled by new home construction, while the resale market retreated.

The output of the service industries expanded 0.9% in the third quarter, while the production of the goods industries contracted 0.1%. Significant growth was recorded in wholesale trade. Finance and insurance, construction, mining, and accommodation and food services also contributed to the overall increase. These gains were partly offset by declines in manufacturing, utilities, and forestry and logging.

Labour income grew at a slower pace than in the first half of 2007, while personal disposable income was up moderately. Corporate profits advanced on strong bank earnings.

The Canadian economy grew at an annualized rate of 2.9% in the third quarter, compared with 4.9% for the US economy.

Industrial production (the output of utilities, mines and factories) slipped 0.4% in the third quarter as utilities and manufacturing both declined. Mining moved forward as a result of the increase in oil and gas exploration and metal ore mining. In comparison, all three sectors increased in the United States, resulting in an overall gain of 1.1% for the quarter.

Economy-wide prices in Canada, as measured by the chain price index for GDP, edged down 0.3% in the third quarter, partly as a result of lower prices for energy exports. Excluding energy, economy-wide prices were up 0.2%, after a 1.5% increase in the second quarter.

Pace of consumer spending eases

Growth of consumer spending eased to 0.7% in the third quarter, less than half the pace posted in the second quarter and the weakest gain in two years.

After increasing 3.9% in the second quarter, consumer purchases of new and used motor vehicles were down a sharp 2.6% in the third. Spending was also down on motor vehicle parts and repairs as well as on motor fuels. Consumption of electricity, natural gas and other fuels all declined.

Continued strength in the housing market stimulated spending on household furniture and appliances. Outlays were also strong on recreational, sporting and camping equipment and on clothing and footwear.

Consumption of services was up 1.1% in the third quarter, matching its pace in the second. Net expenditure abroad was up sharply for a second consecutive quarter, as the stronger dollar boosted Canadians' travel spending abroad (which includes cars and trucks purchased in the United States and brought back) and restrained spending by visitors to Canada.

Large build-up of inventories

Businesses added $15 billion worth of goods and materials to their non-farm inventories in the third quarter, following two quarters of small increases.

Retailers accounted for just over $9 billion of the inventory accumulation, with motor vehicles responsible for nearly half of the build-up. Wholesalers also added significantly to their inventories of motor vehicles and machinery and equipment.

Despite a 0.7% reduction in output, manufacturers built up stocks for the second consecutive quarter as higher inventories of finished goods more than offset lower inventories of raw materials.

Farm inventories dwindled for the third consecutive quarter, as farmers sold off grains at prices driven higher by demand for bio-fuels.

Imports outpace exports by wide margin

Imports of goods and services jumped 4.4% in the third quarter, following a 1.9% gain in the second. Imports have outpaced exports now in 12 of the past 17 quarters.

Machinery and equipment imports jumped 6.4% as Canadian businesses invested heavily in new machinery and equipment. Aircraft, engines and parts led in this category. Automotive products and other consumer goods were both up sharply.

Travel imports were up sharply for the second consecutive quarter as the soaring loonie stimulated Canadians' travel spending abroad.

Exports of goods and services increased 0.6% in the third quarter, after growing 0.8% in the second.

Exports of industrial goods and materials were up 4.5%, the strongest pace in a year, driven notably by higher shipments of nickel ores. Shipments of automotive products were up 2.0%, rebounding from two consecutive quarters of declines. Exports of energy products advanced 1.4% on increased oil and natural gas deliveries to the United States.

Labour disputes in the British Columbia forestry sector, as well as continued softening in US residential construction, contributed to a sharp 6.2% drop in forestry exports. The output of the forestry and logging industry slid 7.2%.

Heavy investment in machinery and equipment

Business investment in machinery and equipment picked up steam in the third quarter, advancing 3.6%, more than twice the pace set in the second quarter and the fastest pace in 10 quarters.

Investment in other transportation equipment jumped 14%, owing mainly to capital outlays by the airline industry. Outlays for telecommunications, computers and other office equipment and software posted solid increases.

On the downside, capital outlays for trucks slipped 2.8%, their third consecutive decline.

Continued gains in housing investment

Investment in housing posted another solid gain during the third quarter. Over the past three quarters, total investment in residential structures has grown 4.8%, compared with a decline of 2.9% over the preceding three quarters.

The strength in housing stemmed from new residential construction. Renovation activity gave an added boost, advancing 1.2% in the third quarter, twice its pace in the second.

The resale market cooled over the summer months, as ownership transfer costs (which include real estate commissions) slipped 1.6%, following two quarters of solid gains.

Labour income slows from first half of 2007

Labour income advanced 0.5% in the third quarter, less than one-third its pace in the first and second quarters, when special pay equity payments in Quebec and special pension contributions in Newfoundland and Labrador boosted labour income.

Excluding these special payments, labour income would have grown 1.2% in the third quarter, 1.6% in the second and 1.8% in the first.

Corporate profits boosted

Corporation profits before taxes increased 2.6%, the fastest pace in nearly two years. Profits were boosted by earnings in the banking sector. The oil and gas extraction industry, petroleum refineries and coal products, retailers and wholesalers also fared well.

Lower exports and labour disruptions in the British Columbia forestry sector contributed to lower profits for wood and paper producers, while lower commodity prices reduced profits in mining (excluding mineral fuels).

Gross domestic product by industry, September 2007

Economic activity was up 0.1% in September, after increasing 0.2% in August and 0.1% in July. The gain recorded by the service producing industries (+0.2%) was partially neutralized by the decrease in the production of goods (-0.1%). Increases in the energy sector and wholesale trade propelled the growth, while a decline in manufacturing and retail trade dampened it. Gains were also registered in construction and in the accommodation and food services sector. The finance and insurance sector and metal ore mining were additional sources of declines.

Wholesale trade rose 1.0% in September, for a fifth consecutive monthly increase. Gains were posted in the wholesaling of food and beverages, motor vehicles, and building supplies. These gains were dampened by declines in the wholesaling of oilseeds and grains, computer and other electronic equipment, lumber and millwork, and office and professional equipment. After a very strong showing in August, retail trade experienced a slight decrease of 0.3% in September.

Manufacturing retreated 0.9% in September, on the heels of declines in August and June, while the Canadian dollar appreciated vis-à-vis the US currency. The production of non-durable goods (-0.7%) and durable goods (-0.9%) declined. Of the 21 major manufacturing groups, 16 decreased, these accounting for 78% of total manufacturing value added.

The energy sector advanced 0.8% in September, after remaining unchanged in August. Electricity production jumped 1.7% in September, while natural gas production posted a slight increase and crude oil production slipped. Oil and gas exploration moved ahead (+3.7%) for the fourth month in a row, but still remains well below the level of activity recorded in early 2007.

The construction sector advanced 0.4% in September, a fifth consecutive monthly increase. The gains recorded in residential construction (+0.8%) and engineering and repair work (+0.3%) overshadowed the modest slip in non-residential building construction (-0.1%).

Industrial production (the output of mines, utilities and factories) retreated 0.3% in September. The gains in utilities and mining were not enough to offset the decline in manufacturing. In the United States, industrial production increased 0.2% in September. Both manufacturing and mining moved ahead, while utilities fell.

'Employment and decent work need to be not a by-product but a central objective of development strategies,' said Under-Secretary-General for Economic and Social Affairs Sha Zukang at a press briefing to mark the launch of the Report of the World Social Situation 2007: The Employment Imperative....

A 'powerful lesson,' said the report, is that liberalization can benefit ordinary citizens, but only after 'the establishment of institutions, legislation and regulations that can limit its adverse effects.' ..." [Xinhua/Factiva]

The study allows direct comparison of tax systems from around the world. It shows how businesses are affected not only by tax rates, but also by the procedural burden of compliance. The report focuses on the number of tax payments made, the time it takes to comply, and the cost of taxes, which is measured by the total tax rate. The total tax rate (TTR) covers five types of taxes that firms pay: profit, social, property, turnover, and other taxes, such as municipal fees and fuel taxes. The steps, time, and cost indicators are used to determine the overall ease of paying taxes.

Canada’s ranking this year may seem a step backwards from its 2006 ranking of 77th out of 175. However, according to Tom O’Brien, a PwC Canada tax partner “Since this years report has been written, there has been the elimination of the Canadian Federal Large Corporation Tax which represents a real savings for many corporations operating in Canada. And, with decreases in Federal and some provincial corporate income tax rates announced for 2007 to 2010, and the harmonization of the Ontario and Canadian Corporate tax systems, Canada’s total tax rate ranking is expected to improve in the near future.”

The top ranking countries with the lowest total tax rate are Vanatu, the Maldives and the United Arab Emirates. The highest are Sierra Leone, Burundi and Gambia. In comparison, the US lands at the 102 spot and the United Kingdom at 52. Seven of the 10 countries in the world with the highest

TTRs are African countries, and it is largely the impact of these seven countries, and the sales and turnover taxes, that drive the average TTR for the sub Saharan African countries to nearly 70% – the highest of any geographical grouping.

In terms of time to comply Canada is 28th and 15th for number of payments. These results are a reflection of the overall efficiency of the Canadian tax system, which features a globally competitive Revenue Agency and incorporates technology such as the internet and electronic banking to increase the ease of remitting tax payments and complying with Federal and provincial tax legislation. The ease of paying taxes can range from filing a single online form in Sweden to making 124 payments a year in Belarus. In fact, countries in the former Soviet and Eastern bloc account for six of the bottom 10 countries in terms of the number of tax payments a company has to make.

Four of the bottom 10 countries have a TTR above 100% of commercial profits. That means that a company with sales of 120% of cost of goods sold cannot make enough profit to pay all the business taxes. Seven of the bottom 10 countries have to pay taxes at least once a week and spend at least 65 days per year in the process.

Obrien notes, “There is good news: paying taxes is now easier, especially in Eastern Europe and Central Asia, which had the most reforms in 2006- 07. Revenues are growing as well. For example, the Czech Republic saw its tax revenue rise by 2% after reducing the corporate income tax between 2004 and 2005. This is part of a longer global trend – the tax burden on businesses has decreased every year since 1985.”

This year, 31 economies improved their business tax systems, and 65 have done so over the past three years. Bulgaria was the top reformer, and Turkey was runner-up.

In terms of income per capita, the Canadian economy grew significantly faster than the US economy between 2000 and 2006. Real income per capita in the United States grew by 9.1% during this period, while in Canada real income per capita grew 15.5%, nearly two-thirds faster than the US rate.

This is exactly the opposite of the situation prior to the turn of the millennium, when commodity prices were weak and the Canadian dollar was depreciating, according to a new study.

The study showed that a long downward trend in Canada's fortunes prior to 1999 was reversed in very short order. In three short years, real income relative to the United States returned toward levels not seen since the mid-1980s. And much of this "reversal of fortunes" has been due to Canada's resource economy.

In the two decades prior to 2000, the US economy tended to grow faster than the Canadian economy, regardless of whether labour productivity, real gross domestic product (GDP) per capita or real income per capita was examined. In fact, if real income is used as the yardstick for measuring performance, the Canadian economy fares worse than if either labour productivity or real GDP per capita is used.

The study found that between 1980 and 1989 and between 1990 and 1999, labour productivity, real GDP per capita and real income per capita all increased faster in the United States than in Canada. After 2000, labour productivity continued to grow faster in the United States than in Canada, while growth in real GDP per capita was similar between the two countries.

For real income per capita, however, the situation was reversed following the turn of the millennium. Between 2000 and 2006, real income per capita in the United States grew by only 9.1%. In Canada, the increase was 15.5%.

The study suggests that the Canadian economy's growth has shown the advantages of diversification coming from its resource base. A diversified economy has some of the same advantages as a diversified stock portfolio. Some sectors may decline slowly for long periods of time, only to experience a sudden and dramatic change in fortunes. Canada has had just such an experience.

All measures pointed to long-term relative decline in Canadian economy before 2000

Prior to 2000, all measures indicated a long-term decline in the Canadian economy relative to the US economy.

Those were the years in which Canada's resource economy was in decline. Resource output as a percentage of GDP was falling around the world. Relative commodity prices were declining. The earnings foreigners received from their investments in Canada were larger than those that Canadians earned from their foreign investments—and the difference tended to get larger each year. As a result, real income growth failed to keep pace with real GDP growth.

All that changed with the commodity boom that Canada experienced after 2003. Export prices rose sharply, the Canadian dollar appreciated and prices of imported goods fell. Canada's receipts of income from foreign investments increased dramatically relative to payments.

At the same time, China and India emerged as important players in the world economy, contributing to a dramatic increase in real income growth in Canada relative to GDP growth. This also affected comparisons between Canada and the United States.

Terms of trade improvements boost real income in Canada

An important ratio for determining how changes in commodity prices, imported consumer goods prices and the Canadian dollar will affect Canada is the "terms of trade." This is the price of exports relative to the price of imports.

When the ratio rises, it signals that the value of Canada's exports is increasing. Exports will now purchase more imports than they would have previously. A rise in the terms of trade indicates that the volume of goods and services Canadians can purchase with their earnings is rising.

The study found that Canada's terms of trade, spurred on by higher commodity prices, falling prices of imported goods and a higher dollar, were a driving force behind real income growth in Canada. The terms of trade rose noticeably, increasing the purchasing power of Canadian real incomes between 2002 and 2006.

At the same time, real income growth in the United States was held back by the rising commodity prices. As a result, Canadian real income growth significantly outpaced American real income growth after 2002.

Net income from abroad a factor in real income growth

The study also found that after 2000, international investment income contributed to real income growth each year, unlike during the 1980s and 1990s when it tended to detract from real income growth.

Between 1980 and 2001, the net amount of income sent abroad each year increased. In 1980, Canadians earned $8.5 billion less on their foreign investments than foreigners derived from their investments in Canada.

Over the next 20 years, the amount of income earned by foreigners from their investments in Canada increased at a faster rate than the income Canadians earned from their foreign investments.

By 1999, Canadian investments abroad were earning $33.2 billion less than foreign investments in Canada.

Beginning in 2000, and accelerating from 2005 to 2006, the income earned by Canadian investments abroad rose sharply. The earnings from foreign investments in Canada failed to keep pace, and the amount of money sent abroad each year became smaller. By 2006, it had shrunk to $10.8 billion, close to the same balance observed in 1980.

Note to readers

Real income refers to real Net National Income (NNI), which is a measure of the real purchasing power of income that remains in Canada after returns from international investment and capital consumption are accounted for.

Real NNI is an officially recognized accounting aggregate in the 1993 System of National Accounts. It is related to real gross domestic product (GDP) through three accounting differences.

The first is the trading gain, which adjusts for relative price changes—primarily, the terms of trade. The trading gain is captured using the same deflator for exports and imports. When the trading gain is added to real GDP, the resulting measure is referred to as real Gross Domestic Income (GDI).

The second accounting difference is net income from abroad. When foreigners invest in Canada they earn a return that can be repatriated. Similarly, the return that Canadians earn on their foreign investments can be returned to Canada. The net flow each year raises or lowers the earnings that accrue to Canadians. When the real net flow is added to real GDI, the result is real Gross National Income (GNI). This aggregate was formerly known as real Gross National Product (GNP).

The third accounting difference is depreciation of the existing physical capital stock. Each year wear and tear, obsolescence or accidents lowers the stock of physical capital. If it is not maintained or replaced, the stock of physical capital would be reduced each year, eventually leading to a declining standard of living in Canada. When real depreciation is added to real GNI, the real NNI aggregate is generated. This aggregate was formerly known as real Net National Product (NNP).

Excluding energy, the all-items index climbed 1.9% in the 12 months preceding October 2007, a slowdown from the 2.1% growth recorded in September. Lower prices for the purchase and leasing of passenger vehicles were the main factor behind the slowdown of this index.

The Bank of Canada's core index, used to monitor the inflation control target, increased by 1.8% between October 2006 and October 2007, a slowdown compared with the rate of 2.0% in September. This was the weakest growth of this index since June 2006. This slowdown was mainly the result of lower prices for the purchase and leasing of passenger vehicles.

Consumer prices fell by 0.3% in October compared with the preceding month. This decrease was primarily the result of lower gasoline prices. The core index was down 0.2% over that period. Significant downward pressure on both indexes came from lower prices for traveller accommodation (-8.8%), passenger vehicles (-1.4%) and women's clothing (-2.3%).

The all-items index excluding energy declined 0.1% between September and October, following a 0.2% growth between August and September.

Gasoline drives growth in year-over-year consumer prices for a second straight month

The upward pressure on consumer prices between October 2006 and October 2007 was driven by gasoline, as it was in September.

In October 2007, the price at the pump rose 13.5% compared with the same month in 2006, a change due largely to a drop in last year's gasoline prices.

Upward pressure from the cost of owned accommodation (+4.8%) continued in October, due mainly to the growth in mortgage interest cost, homeowners' replacement cost and property taxes.

Mortgage interest cost rose 6.7% in October compared with 6.4% in September. October's growth was the highest since June 1991. This upturn is more a reflection of increases in amounts borrowed because of higher new housing prices than of increases associated with the renewal of mortgage loans at higher rates.

The growth in homeowners' replacement costs (+5.0%) has been slowing for several months and is now in line with the changes observed at the start of 2006. This slowdown follows the change in the evolution of new housing prices. Homeowners' replacement cost represents the worn-out structural portion of housing and is estimated using new housing prices (excluding land).

Property taxes were up 3.8% in October compared with October 2006. Property tax hikes were higher in Newfoundland and Labrador (+8.8%) and in Alberta (+6.0%). In both provinces, tax rates fell but a re-assessment of properties led to an increase in the amounts paid. The only province in which residents paid less in property tax was Manitoba (-1.5%). Properties were not assessed in this province in 2007 and the amounts paid out in property tax credits for education rose.

Canadians also had to pay 3.0% more for restaurant meals in October 2007 compared with the same month last year. Higher prices for dairy products and certain meats contributed to the increase, along with the cumulative impact of higher minimum wages in almost all provinces and territories during the 12-month period.

A 2.4% price decrease for the purchase and leasing price of passenger vehicles was the main factor in dampening the rise in consumer prices. This decline was due mainly to an increase in discounts given by manufacturers on 2007 models. This index continued the downward trend that began in July 2007.

Prices for fresh vegetables went down 14.6% in October. A year-over-year drop of this magnitude had not occurred since June 1996. It follows on the heels of the 9.2% drop recorded in September.

A 13.8% decline in prices for computer equipment and supplies also moderated the advance in the all-items index. However, this decline was weaker than decreases observed during the first eight months of 2007.

CPI growth faster in the Atlantic provinces

Gasoline prices and mortgage interest cost were among the five main contributors to the rise in the all-items index in every province.

The 12-month change in the Consumer Price Index (CPI) accelerated in all Atlantic provinces, where higher gasoline prices were among the main contributors to the acceleration.

The rate of growth of the CPI surpassed the national average in Prince Edward Island (+3.1%) and New Brunswick (+3.3%), along with Alberta (+5.0%) and Saskatchewan (+3.6%). CPI growth remained stable in Saskatchewan, but increased slightly in Alberta in response to a surge in natural gas prices and property taxes.

The upward movement of consumer prices slowed substantially in Manitoba (+1.9%), mainly because gasoline prices did not rise as much in October as in September and property taxes fell 1.5%.

Monthly change: Gasoline drags consumer prices down between September and October 2007

Consumer prices fell 0.3% between September and October 2007, after posting growth of 0.2% in the previous month.

This turnaround stemmed mainly from changes in the variation in gasoline prices. On a monthly basis, gasoline prices fell 3.3% in October after a 0.8% rise between August and September.

The price of traveller accommodation also fell by 8.8% as the high season came to an end. This followed a comparable decline of 10.4% between September and October 2006.

A 2.3% decline in the price of women's clothing also had a significant dampening effect on the all-items index. Lower prices stemmed from specials at several retailers.

The downward movement in these areas was partially offset by increases in other components, including property taxes, which were up 3.8%. Since the change in this component is only calculated annually it has a significant impact on the monthly index.

A 0.8% gain in mortgage interest cost also played a large role, a pace unchanged from last month. The rise in new housing prices had a greater impact than the renewal of mortgage loans at higher interest rates in October.

The 3.3% increase in natural gas prices also moderated the drop in the all-items index.

OTTAWA – The Bank of Canada today released its October Monetary Policy Report, which discusses current economic and financial trends in the context of Canada's inflation-control strategy.

There have been a number of significant economic and financial developments since the July Monetary Policy Report Update. Against a backdrop of robust global economic expansion and strong commodity prices, the Canadian economy has been stronger than projected and is now operating further above its production potential than had been previously expected.

Since the July Update, the outlook for the U.S. economy has weakened. The Canadian dollar has appreciated sharply, and credit conditions have tightened. Despite these tighter credit conditions, the momentum of domestic demand in Canada is expected to remain strong. The combined effect of a weaker U.S. outlook and a higher assumed level for the Canadian dollar implies, however, that net exports will exert a more significant drag on the economy in 2008 and 2009 than previously expected. As a result, Canada's gross domestic product is projected to grow by 2.6 per cent in 2007, 2.3 per cent in 2008, and 2.5 per cent in 2009.

With the economy moving back towards balance, and with the direct effect of the stronger Canadian dollar on consumer prices, core inflation is projected to gradually decline to 2 per cent in the second half of 2008. Total CPI inflation is expected to peak at about 3 per cent later this year and then move back down to the 2 per cent target in the second half of 2008.

But there are a number of upside and downside risks to the Bank's inflation projection. The main upside risk is that excess demand in the Canadian economy could persist longer than projected. The main downside risk is that output and inflation could be lower if the Canadian dollar were to be persistently higher than the assumed average level of 98 cents U.S. for reasons not associated with demand for Canadian products.

All factors considered, the Bank judges that the risks to its inflation projection are roughly balanced, with perhaps a slight tilt to the downside.

Against this backdrop, the Bank left its key policy rate unchanged on 5 September and 16 October at 4.50 per cent. The Bank judges, at this time, that the current level of the target for the overnight rate is consistent with achieving the inflation target over the medium term.

Statscan - Output and employment continued to expand steadily, unfazed by the late-summer turmoil in credit markets and the rapid ascent of the Canadian dollar.

The resiliency of the economy reflects a number of factors. While the turmoil in financial markets disrupted commercial paper in August, total short-term business credit grew steadily in August and September as borrowers switched to other instruments. The stock market recovered in September and October from small losses over the summer.

In no other sector was the resiliency of the economy to shocks better demonstrated than in manufacturing. Even after the exchange rate hit parity with the US, two indicators of manufacturing remained positive in October. The Business Conditions Survey reported that more manufacturers plan to expand than to reduce both output and payrolls in the fourth quarter. This was borne out by factory employment in October, which held onto its gain over the summer despite growing reports of shortages of both skilled and unskilled labour. The steady rise in the Canadian dollar will further test the resiliency of manufacturers.

Household demand rebounded strongly in Central Canada in August and September. Quebec took the lead with a jump of almost 50% in housing starts in September. The unusual strength was largely due to the construction of housing for the elderly in Montréal. The increase of almost 1,000 new and vacant multiple units in this city since its low in April, and the summer slowdown in sales of existing homes indicate that the underlying trend is more modest. However, new home prices were up only 4.3% year-over-year, one of the lowest in the country, making owning a home easier. Retail sales saw an end to two straight monthly decreases.

Housing starts in Ontario recovered to near their high set in January, while retail sales increased 2%, driven by a wide range of goods. At the same time, 30,000 more American tourists were visiting the province than in July, despite the higher Canadian dollar. Moreover, the higher Canadian dollar does not appear to have discouraged employment either, which picked up throughout the summer, stimulating labour income. In October, Ontario posted the strongest year-over-year increase in employment (+2.5%) since July 2003. This represents 164,000 more jobs in the past 12 months. Manufacturing sales fell for the fourth time in five months in August, largely due to the automobile industry.

Retail sales fell in British Columbia for the first time in 2007 after slowing over the summer. Shipments, however, halted a three-month slide. Shipments of metals rebounded sharply, offsetting the negative impact on production of the forestry strike. The drop in forestry products aggravated the decrease in exports to Japan, where the gross domestic product fell in the second quarter.

In the Prairies, shipments also strengthened, climbing 2.6% to reverse decreases in June and July. Saskatchewan has been the exception in this region for a number of months, recording its sixth increase in retail sales since the start of 2007. Its Canada-high year-over-year growth of 13.5% occurs at a time when property values are on the rise. In Saskatoon, for example, new home prices have risen about 50%, driven by employment growth of nearly 10% in only two years.

The housing index fell 1.7% after three large monthly gains. Both components declined. Existing home sales in autumn retreated from the record highs set during the summer, while housing starts returned to more normal levels after a burst in the construction of multiple units sent overall starts to a 29-year high in September.

The underlying trend in household spending remained positive. Spending on durable goods rose another 0.6%, and auto sales remained strong in October. The personal sector was the driving force behind the growth in services employment in October.

The Toronto stock market continued to set new records. While energy stocks continued to benefit from record oil prices, there were notable gains in technology stocks as well.

Manufacturers continued to be squeezed between sluggish export demand from the US and the rising Canadian dollar. The US leading indicator eked out a 0.1% increase, as strong financial and labour markets overcame more declines in housing. New orders received by Canadian manufacturers fell 1.7%. Small declines in the average workweek and the ratio of sales to inventories are probably more indicative of the underlying trend in manufacturing.

Foreign-controlled businesses operating in Canada make large investments in knowledge creation via investments in innovation, advanced technology and skilled labour, according to a new report assessing the activities of foreign multinationals.

These investments often translate into superior market outcomes, as foreign-controlled businesses often enjoy relatively high rates of productivity compared with many of their domestic competitors.

The labour productivity of foreign-controlled plants in the manufacturing sector has increased considerably relative to domestic plants over the last three decades.

The report puts into perspective the results of a large number of analytical studies conducted at Statistics Canada that examined the importance of multinationals to the Canadian economy.

Foreign multinationals make valuable contributions to the Canadian economy. Their plants not only have higher productivity, they tend to be more capital intensive, pay higher wages, and hire more white-collar workers than their domestic competitors.

The higher productivity of foreign-controlled plants stems from a variety of factors, such as size, industry membership, technology use, and research and development activity. When these factors are not taken into account, the performance gap between foreign multinationals and domestic companies is large.

But even after differences in size and industry are accounted for, multinationals still enjoy performance advantages over many domestic companies.

Little difference between foreign multinationals and domestic firms with an external outlook

The report cautions against concluding that the plants of foreign multinationals are "simply better" than their Canadian-owned competitors.

Canadian firms that develop an external orientation—those that are active in export markets or that have production activities outside Canada—often stack up well against foreign multinationals.

New research described in the report found that there is little difference between foreign-controlled plants and Canadian-controlled plants whose parent has an international orientation.

These two groups have very similar profiles when it comes to measures of value-added per worker, gross output per worker, wages, skilled workers and technology use.

In terms of research and development and innovation, Canadian companies with an external orientation exhibit slightly better performance than foreign multinationals after differences in firm size, age and industry are taken into account.

Foreign multinationals have long had a substantial presence in domestic markets

Several of the studies described in this report show that multinational firms have long had a substantial presence in Canadian markets in terms of their share of corporate assets and revenues.

The studies note that changes in the amount of multinational activity in Canada in recent decades have coincided with important transitions in the regulatory regime governing foreign direct investment.

The share of non-financial assets under foreign control fell during the more restrictive era of the 1970s and the early 1980s, and rebounded with the subsequent introduction of a less restrictive regulatory environment.

As a result, current levels of multinational activity are similar to historical levels. By 2005, the overall level of foreign control in non-financial industries was at almost the same level as it was during the mid-1960s.

Foreign control is concentrated in the non-financial sector of the economy, especially when measured by operating revenue. This is due, in part, to stricter regulations on foreign control in the finance and insurance industries, especially in banking.

Foreign companies often gravitate to sectors of the economy where their competitive advantages can be more fully exploited. These include the sectors where economies of returns to scale and capital intensity are large, and high-tech sectors, where competition is often based on new innovative technologies.

Since 2000, the foreign-controlled share of operating revenue in non-financial industries has been fairly constant, hovering around 30%.

In terms of assets, foreign-controlled corporations accounted for 27.2% of assets held in non-financial industries in 2005. This has changed little since 2001.

However, these foreign companies are playing an increasingly important role in shaping Canada's economic performance, as the overall contribution that they make to aggregate productivity growth has increased over the last three decades.

Foreign-controlled multinationals have contributed positively to productivity in three ways. First, productivity growth has been relatively high in foreign-controlled plants compared with domestic plants. Second, there are productivity spillovers from foreign-controlled plants to domestic producers. Third, mergers involving foreign producers more frequently lead to gains in productivity, wages, profitability or market share than do mergers between domestic firms.

About two-thirds of labour productivity growth in manufacturing during the last two decades came from foreign-controlled firms, despite the fact that they accounted for less than 40% of employment.

Foreign multinationals contribute to head-office employment growth

The report also notes the impact that foreign companies have had on recent trends in head-office employment. It found little evidence that foreign takeovers lead, in the aggregate, to hollowing out, that is, multinationals shedding head-office employment and moving it abroad.

The impact of foreign takeovers between 1999 and 2005 has not been to reduce the number of head offices in Canada or head-office employment. As a result of foreign takeovers, more new head offices were created than lost from 1999 to 2005, and employment in head offices was as high after the takeovers as it was before.

Over the entire period from 1999 to 2007, total employment in the head offices of foreign-controlled firms was, on average, about one-half of the total head-office employment of domestic firms. Despite this, foreign firms made approximately the same contribution as did domestic firms to the growth in head-office employment during this period.

Note to readers

This release is based on a new report that provides a concise synthesis of a wide array of data and research published by Statistics Canada on multinationals, focusing on both historical and current studies.

The first section of the report discusses the macroeconomic contribution of foreign multinationals operating in Canada, focusing on two indicators of multinational activity: foreign control and foreign direct investment.

The second section concentrates on the strategies and activities of foreign multinationals that are relevant to ongoing debates over whether the presence of foreign multinationals promotes or hampers Canada's industrial competitiveness.

The third section focuses on studies that examine the foreign activities of Canadian-owned multinationals, and how their domestic plants compare to foreign-controlled plants operating in Canada.

Sharp declines in exports of machinery and equipment, and industrial goods and materials, the two most important sectors in terms of value, overshadowed gains in automotive products, energy products, and other consumer goods.

Exports of machinery and equipment tumbled 7.2% to $7.6 billion, their lowest level since May 2006, completely reversing the gains achieved in August. Aircraft and other transportation equipment were solely responsible for the declines, plummeting 31.5% to $1.4 billion, reaching their lowest level since January 2000.

Industrial goods and materials contracted 3.6% to $8.4 billion. Metal ores, in particular nickel, plunged for the second month in a row, following record levels in July. Prices for base metals were dampened by weakness in the American housing market.

Forestry products fell 7.4% to $2.2 billion, the sixth consecutive monthly drop. Declines were widespread, led by lumber and sawmill products, which shrank 9.2% as prices continued to fall.

Exports of agricultural and fishing products declined 3.6% to $2.9 billion, as wheat plunged 27.4%. These declines were offset by soaring exports of barley to various destinations.

Automotive products climbed 2.3% to $6.3 billion, slightly above levels recorded a year ago. This increase was largely attributable to passenger autos, which surged 6.8%, and trucks and other motor vehicles, which increased 1.0%. Motor vehicle parts fell for the second consecutive month, dipping below $2 billion for the first time since February 2001.

Gains in crude petroleum and other energy products, primarily petroleum and coal, offset declines in natural gas, boosting exports of energy products 1.2% to $7.6 billion. The jump in exports of crude petroleum stemmed from a rise in volume as prices declined slightly. The increase in petroleum and coal products reflected an increase in price and volume.

Following August's decrease, exports of other consumer goods advanced 3.0% to $1.6 billion, reflecting increased exports of pharmaceutical products now manufactured in Canada.

Energy products fuel imports

Imports recovered somewhat in September from the declines observed in August, as the Canadian dollar continued to gain ground. Higher imports of energy products, industrial goods and materials, automotive products, and other consumer goods more than compensated for the declines registered by the three remaining sectors.

Energy products led the expansion in imports in September, accounting for more than half of the increase. Imports in this sector soared 13.5% to reach $3.4 billion, their highest level in 2007, and just shy of the record high achieved in August 2006. Petroleum and coal products, crude petroleum, and to a lesser extent coal and other related products, drove the increase. The increase of crude petroleum, and petroleum and coal products was due almost entirely to volume. Strong gasoline demand, refinery shutdowns for maintenance and upgrades, and the preparation for the upcoming winter heating season were among the factors contributing to the growth.

Imports of industrial goods and materials rose 2.6% to $7.2 billion, their highest level since February. Metals and metal ores were the sole source of the growth in the sector, rising 10.8% to $2.5 billion on the strength of precious metals and alloys.

Following August's decline, automotive products rose 1.6% to $6.7 billion, reaching levels slightly higher than those in September 2006. Motor vehicle parts increased 6.5%, while trucks and other motor vehicles grew 3.8%. Passenger autos declined for the second month in a row, falling 6.0% to $2.1 billion.

Machinery and equipment fell 1.9% to $9.6 billion. Aircraft and other transportation equipment were responsible for almost the entire decline, falling 13.9% to $1.3 billion. Despite the second consecutive monthly decrease since peaking in July, aircraft and other transportation equipment remained strong in comparison to previous years.

Agricultural and fishing products dipped 0.5% to $2.1 billion, following a record high in August. Declines in fish and marine animals, meat, and tobacco imports offset record imports of beverages, cocoa and coffee, and animal feed. Imports of corn and other ingredients for animal feed have been on the rise in recent months.

Snapshot of emerging markets: Russia

Over the past several years, Russia has been growing in importance as a trading partner. In 2006, Canada's total merchandise trade with Russia amounted to $2.3 billion, more than twice the value of a decade earlier.

During the first nine months of 2007, exports to Russia were valued at $875.9 million, a 37.6% increase over the same period in 2006. Imports from Russia amounted to $1.1 billion, virtually unchanged from the same period in 2006.

The products in highest demand from Russia were crude petroleum, precious metals, and fertilizers. Imports of these three commodities were valued at $761 million in the first three quarters of 2007, with crude petroleum accounting for 87.4% of that value.

In contrast, manufactured goods dominated Canadian exports to Russia. In the first nine months of 2007, Canada's top exports to Russia were industrial and agricultural machinery, followed by fresh, chilled and frozen meat. Together, these commodities were valued at $241.5 million, with machinery accounting for two thirds of that value.

Merchandise trade
	August 2007r	September 2007	August to September 2007	September 2006 to September 2007	January to September 2006	January to September 2007	January–September 2006 to January–September 2007
	Seasonally adjusted, $ current
	$ millions		% change		$ millions		% change
Principal trading partners
Exports
United States	29,391	28,944	-1.5	-0.8	271,746	271,195	-0.2
Japan	800	747	-6.6	-15.4	7,770	7,723	-0.6
European Union1	3,234	2,906	-10.1	-0.5	23,960	30,200	26.0
Other OECD countries2	1,708	1,660	-2.8	-3.9	12,351	15,688	27.0
All other countries	3,455	3,451	-0.1	13.8	24,367	29,793	22.3
Total	38,588	37,710	-2.3	-0.1	340,191	354,599	4.2
Imports
United States	22,453	22,764	1.4	3.3	197,218	203,873	3.4
Japan	1,000	907	-9.3	-11.3	9,026	8,853	-1.9
European Union1	3,472	3,652	5.2	2.7	31,471	32,203	2.3
Other OECD countries2	2,036	2,199	8.0	23.9	17,481	18,470	5.7
All other countries	5,335	5,544	3.9	6.9	46,026	49,477	7.5
Total	34,296	35,065	2.2	4.4	301,219	312,880	3.9
Balance
United States	6,938	6,180	...	...	74,528	67,322	...
Japan	-200	-160	...	...	-1,256	-1,130	...
European Union1	-238	-746	...	...	-7,511	-2,003	...
Other OECD countries2	-328	-539	...	...	-5,130	-2,782	...
All other countries	-1,880	-2,093	...	...	-21,659	-19,684	...
Total	4,292	2,645	...	...	38,972	41,719	...
Principal commodity groupings
Exports
Agricultural and fishing products	2,995	2,887	-3.6	3.3	23,176	26,015	12.2
Energy products	7,476	7,565	1.2	6.8	66,391	68,946	3.8
Forestry products	2,412	2,233	-7.4	-15.7	25,306	22,431	-11.4
Industrial goods and materials	8,704	8,390	-3.6	1.1	68,613	79,910	16.5
Machinery and equipment	8,211	7,618	-7.2	-4.7	70,547	72,726	3.1
Automotive products	6,160	6,304	2.3	1.3	61,657	59,270	-3.9
Other consumer goods	1,509	1,555	3.0	6.4	13,053	14,414	10.4
Special transactions trade3	653	643	-1.5	-12.3	6,499	6,336	-2.5
Other balance of payments adjustments	468	514	9.8	0.2	4,947	4,553	-8.0
Imports
Agricultural and fishing products	2,158	2,148	-0.5	6.2	17,391	19,072	9.7
Energy products	2,973	3,374	13.5	14.6	26,645	27,286	2.4
Forestry products	247	245	-0.8	-4.7	2,293	2,250	-1.9
Industrial goods and materials	6,979	7,158	2.6	3.1	62,525	64,330	2.9
Machinery and equipment	9,803	9,618	-1.9	0.4	84,992	87,897	3.4
Automotive products	6,562	6,664	1.6	4.6	59,489	60,566	1.8
Other consumer goods	4,502	4,591	2.0	5.4	38,479	41,261	7.2
Special transactions trade3	407	578	42.0	35.7	3,381	4,124	22.0
Other balance of payments adjustments	666	689	3.5	1.3	6,026	6,094	1.1
r revised ... not applicable 1. Includes Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom. 2. Other countries in the Organisation for Economic Co-operation and Development (OECD) include Australia, Canada, Iceland, Mexico, New Zealand, Norway, South Korea, Switzerland and Turkey. 3. These are mainly low-valued transactions, value of repairs to equipment, and goods returned to the country of origin.

Note To Readers

Merchandise trade is one component of the current account of Canada's balance of payments, which also includes trade in services.

International merchandise trade data by country are available on both a balance of payments and a customs basis for the United States, Japan and the United Kingdom. Trade data for all other individual countries are available on a customs basis only. Balance of payments data are derived from customs data by making adjustments for items such as valuation, coverage, timing and residency. These adjustments are made to conform to the concepts and definitions of the Canadian System of National Accounts.

At the end of each quarter, The Daily includes a section describing trends and topics of interest relating to Canadian international merchandise trade. This section typically discusses data that is presented on a customs basis and not seasonally adjusted.

Revisions

In general, merchandise trade data are revised on an ongoing basis for each month of the current year. Each quarter, customs basis data are revised for the previous data year.

Factors influencing revisions include late receipt of import and export documentation, incorrect information on customs forms, replacement of estimates with actual figures, changes in the classification of merchandise based on more current information, and changes to seasonal adjustment factors.

Revised data are available in the appropriate CANSIM tables.

For the highlights of The Gender Gap Report, click here.

*Please note that scores are produced on a zero-to-one scale and can be roughl interpreted as the percentage of the gender gap that has been closed

Global Gender Gap Index scores can be interpreted as the percentage of the gap between women and men that has been closed. Taking averages across the subindexes for 115 countries covered in both 2006 and 2007 reveals that, globally, progress has been made on narrowing the educational attainment gap from 91.55% to 91.60%, the political empowerment gap from 14.07% to 14.15% and the economic participation gap from 55.78% to 57.30%. On health, however, the gap increases, dropping from 96.25% to 95.81%.

“The Global Gender Gap Report quantifies the challenge: it shows that the highest ranking country has closed a little over 80% of its gender gap, while the lowest ranking country has closed only a little over 45% of its gender gap. By providing a comprehensible framework for assessing and comparing global gender gaps and by revealing those countries that, regardless of the overall level of resources available, are role models in dividing these resources equitably between women and men, we are expectant that this Report serves as a catalyst for greater awareness as well as greater exchange between policy-makers,” said Saadia Zahidi, Head of the World Economic Forum’s Women Leaders Programme. (Click on the picture to watch a two-minute video with Saadia Zahidi.)

The Global Gender Gap Report 2007 is based on the innovative new methodology introduced last year and includes detailed profiles that provide insight into the economic, legal and social aspects of the gender gap in each country. The Report measures the size of the gender gap in four critical areas of inequality between men and women:

Economic participation and opportunity – outcomes on salaries, participation levels and access to high-skilled employment

Educational attainment – outcomes on access to basic and higher level education

Political empowerment – outcomes on representation in decision-making structures

Health and survival – outcomes on life expectancy and sex ratio

“The World Economic Forum’s Global Gender Gap Report is a framework for capturing the magnitude of gender-based disparities across the world and tracking how they evolve over time. As policy-makers and business leaders seek to address talent shortages, there is increasing urgency to close gender gaps and leverage the talents of both women and men. At the World Economic Forum, we put strong emphasis on addressing this challenge – a challenge that transcends across the majority of the world’s cultures, industries and income groups – through a multistakeholder approach,” said Klaus Schwab, Founder and Executive Chairman of the World Economic Forum.

The Report is the result of collaboration between Ricardo Hausmann, Director of the Centre for International Development at Harvard University; Laura Tyson, Professor of Business Administration and Economics at the University of California, Berkeley; and Saadia Zahidi. “The Index assesses countries on how well they are dividing their resources and opportunities among their male and female populations, regardless of the overall levels of these resources and opportunities. Thus the index does not penalize those countries that have low levels of education overall, but rather those where the distribution of education is uneven between women and men,” said Ricardo Hausmann. (Click on the picture to watch a three-minute video with Ricardo Hausmann.)

The Report also provides some evidence on the link between the gender gap and the economic performance of countries. “Our work shows a strong correlation between competitiveness and the gender gap scores. While this does not imply causality, the possible theoretical underpinnings of this link are quite simple: countries that do not fully capitalize effectively on one-half of their human resources run the risk of undermining their competitive potential. We hope to highlight the economic incentive behind empowering women in addition to promoting equality as a basic human right,” added Laura Tyson.

The World Economic Forum continues to expand geographic coverage in the Report. Featuring a total of 128 countries, this year’s Report provides an insight into the gaps between women and men in over 90% of the world’s population. Coverage has been expanded to Armenia, Azerbaijan, Belarus, Belize, Cuba, Maldives, Mozambique, Oman, Qatar, Suriname, Syria, Tajikistan and Vietnam. The Report covers all current and candidate European Union countries, 23 from Latin America and the Caribbean, 23 from sub-Saharan Africa, over 20 from Asia and 15 from the Middle East and North Africa. Thirteen out of the 14 variables used to create the Index are from publicly available “hard data” indicators from international organizations, such as the International Labour Organization, the United Nations Development Programme and the World Health Organization.

Economic growth was widespread as several Western Provinces, as well as two of the four Atlantic Provinces registered growth rates above the national average.

Nationally, gross domestic product (GDP) increased 2.8% in 2006, a slightly slower pace than the 3.1% gain in 2005. Services production generally outpaced goods production.

Growth increased 6.6% in Alberta, the fastest pace of all provinces and territories. Continued investment in Alberta's oil-patch rippled through all sectors in the province.

Newfoundland and Labrador, New Brunswick and Nunavut were helped by increased production in their mining industries. Good crop conditions and busy construction sites pushed economic growth above the national average in both Prince Edward Island and Manitoba.

Retail and wholesale trade gave a lift to British Columbia, Quebec and Ontario. This effect was dampened, however, in the Central Canadian Provinces by weakness in the manufacturing sector.

Saskatchewan and Nova Scotia both experienced downturns in their mining, and oil and gas extraction industries, keeping growth in these provinces below the national pace. Saskatchewan was further affected by a smaller crop in 2006 and was the only province to register a decline in GDP.

Construction played an important role in the North, as growth in Yukon was slowed by a decline in this activity, while growth in the Northwest Territories was bolstered.

Between 2003 and 2006, most of the growth was in Western Canada, with Saskatchewan, Alberta, and British Columbia leading the way. The provinces and territories with the strongest growth over this period generally benefited from upturns in primary industries, such as agriculture, mining, and oil and gas extraction.

Growth rates for real GDP in the provinces and territories have been revised from 2003 to 2006. Overall, the picture of economic growth remained the same. Growth rates were revised up in 2006 for five jurisdictions: Newfoundland and Labrador, Prince Edward Island, New Brunswick, Ontario, and the Northwest Territories. Growth rates in Nova Scotia, Manitoba, Saskatchewan, Alberta, British Columbia, and Nunavut were revised down. The growth rates in Quebec and in Yukon remained the same.

Commodity prices continue to energize economies in Western Canada

Alberta led the country in economic growth for the third consecutive year. High oil prices accelerated investment in the oil patch. The economic impact of the development of the oil sands in northern Alberta rippled across the province. An influx of workers boosted personal income and, in turn, increased demand for new homes and other goods and services. Construction continued at a feverish pace.

British Columbia also benefited from a boom in construction, although overall growth in economic activity slowed to 3.3%. Strong population growth and projects related to the upcoming Olympic Games have spurred on investment in construction. In 2006, service industries such as retail and wholesale trade, along with financial services, were important contributors to the economy.

Busy construction sites pushed economic growth to 3.2% in Manitoba, above the national average for the first time since 1998. An increase in hydro-electricity output in 2005 and a good crop in 2006, combined with growing investment in residential and non-residential construction, moved Manitoba's economy forward.

After three years of strong growth, the Saskatchewan economy slipped 0.4% in 2006. A smaller crop along with a downturn in several key mining industries contributed to the decline. However, with high commodity prices, income levels remained relatively strong in 2006.

Domestic demand supports Central Canada

Retail and wholesale trade continued to support the economies of Ontario and Quebec as income levels remained strong. Business investment, particularly in Ontario, also continued to boost the economy.

Despite this, the growth rates for both Ontario and Quebec have remained below the national average over the last four years. The economy advanced 2.1% in Ontario in 2006 and 1.7% in Quebec.

The Quebec and Ontario economies were hurt by a rising Canadian dollar and a slowdown in US demand. Manufacturing, lethargic throughout the past four years, experienced a sharp drop in 2006 as motor vehicle makers in Ontario were hard hit by a reduction in export demand.

Stronger economic activity returns to Eastern Canada

After two years of below-average growth, two of the four Eastern Provinces exceeded the national average in 2006.

Economic activity jumped 3.3% in Newfoundland and Labrador after remaining flat in 2005. The first full year of production at the Voisey's Bay nickel mine and the White Rose oil field contributed to this advance.

New Brunswick also registered an upturn in its economic fortunes in 2006 (+3.0%). After two years of slow growth, gains in manufacturing, forestry and construction pushed the province forward. Investment in non-residential construction was particularly strong.

A 2.6% gain in Prince Edward Island was fuelled by a good potato crop and renewed strength in the province's construction industry. Exports also advanced, contributing to a rise in corporate profits.

Nova Scotia was one of two Eastern Provinces to lag the national average in 2006 (+0.9%). A big upswing in construction investment was offset by a decrease in most of the primary goods-producing industries, including natural gas production. Exports fell in 2006 as a result of this weakened production.

Construction an important part of the territorial economies

Large construction projects have played an important role in the territorial economies over the past few years.

In 2006, Nunavut benefited from the economic activity at the Jericho diamond mine. The territory's economy advanced 3.4% in 2006 on the heels of a decline (-0.2%) in 2005.

In Yukon, a downturn in construction activity in 2006, following two years of big increases, led to slower growth. Yukon's economy advanced 2.9% in 2006, compared with 3.9% in 2005.

The Northwest Territories have experienced large variations in growth over the past few years. Substantial increases in construction investment from 2004 to 2006 propelled the economy forward. The economy grew 2.9% in 2006, rebounding from a sharp downturn (-2.5%) in 2005.

Note to readers

This release of provincial and territorial economic accounts is an update of estimates released in The Daily on April 25, 2007.

This latest release is based on updated data sources and methodologies, and includes the latest input-output tables' benchmarks (revised 2003 and preliminary 2004 data, also released today), revisions to the National Income and Expenditure Accounts released on May 31, 2007, and revisions to the national gross domestic product (GDP) by industry released on October 31, 2007.

Other elements incorporated in the update are the re-referencing of the volume estimates to 2002, and the conversion to the 2002 North American Industrial Classification System (NAICS) from NAICS 1997 for GDP-by-industry statistics.

Percentage changes for expenditure- and industry-based statistics (such as consumer expenditures, investment, exports, imports, production and output) were calculated using volume measures, that is, adjusted for price variations.

Percentage changes for income-based statistics (such as labour income, corporate profits and farm income) were calculated using nominal values, that is, not adjusted for price variations.

VANCOUVER, BRITISH COLUMBIA - Increased foreign investment and foreign business activity in Canada leads to lower prices for consumer goods, greater choice, better quality goods and services, and higher wages, according to a new paper by economists with independent research organization The Fraser Institute.

"Restrictions on foreign investment and business activity are designed to protect certain domestic industries and do nothing to help Canadian consumers or the overall economy," said Jason Clemens, The Fraser Institute's Resident Scholar in Fiscal Studies.

"Canada should be encouraging foreign investment and foreign business activity, rather than considering additional restrictions."

The Benefits of Foreign Business Activity in Canada reviews existing research on foreign business activity in order to assess the economic impact of restrictions on activities such as foreign direct investment, foreign ownership, and foreign competition.

"With the sale of large Canadian companies such as Inco, Dofasco, the Hudson's Bay Company, Sleeman's Brewing, and Alcan to foreign investors, a great hue and cry has arisen for stricter limits on foreign investment," Clemens said.

"But Canada has some of the most restrictive rules among industrialized countries on foreign business activity. More rules will further penalize Canadian consumers and harm our economy."

The paper found that Canada has a plethora of regulations restricting foreign business activity. The most significant is the Investment Canada Act, administered by Industry Canada. Under this act, foreign investments are reviewed before they are approved in order to ensure that such investment will be of net benefit to Canada. Additionally, there are a number of industry-specific regulations that limit foreign ownership or investment in particular business segments such as telecommunications, airlines, banking, pipelines, mining, oil and gas, radio and TV broadcasting, and publishing.

The research shows that industry-specific regulations shelter domestic firms from competition, ultimately resulting in higher prices for consumers, reduced choice, and slower access to technology on the part of industry.

Among countries within the Organization for Economic Cooperation and Development (OECD), Canada ranks 25th out of 29 nations in terms of openness to foreign business, joining other countries with heavy restrictions such as Iceland and Mexico. The countries most open to foreign business activity tend to be European, led by Belgium.

In fact, Clemens noted that several OECD reports have been quite critical of Canada's restrictive policies on foreign business activity. A 2006 survey singled out Canada as one of the most restrictive countries for foreign business activity in many sectors, and suggested it needed to lift restrictions of foreign activity in heavily regulated sectors such as airlines, telecommunications, and broadcasting if it wanted to increase competition and efficiency.

The study breaks down foreign business activity into three areas: foreign direct investment (the investment in assets of domestic companies), foreign ownership (a foreign firm gains a controlling interest in a domestic company), and foreign competition (foreign companies are allowed to compete directly with domestic companies in the Canadian market).

In all instances, the research shows that the foreign business activity improves the performance of domestic companies, usually by increasing productivity by creating competition or facilitating the transfer and use of new technology. Consumers benefit from additional choice and lower prices, while workers benefit through higher wages.

"The research is clear; foreign business activity increases investment, competition, innovation, and access to new technology. This leads to lower prices for consumers, additional choice and higher wages for workers," Clemens said.

"There's no sound, logical reason why Canadians should fear foreign investment and competition in Canada."

In light of the evidence showing the benefits of foreign business activity, Clemens called on the federal government to create a framework that encourages, rather than restricts foreign business activity, in order to increase Canada's competitiveness relative to other industrialized countries.

"We need to recognize that the economic benefits of foreign business activity will play a critical role in shaping future investment and competition policy in this country."

The Fraser Institute is an independent research and educational organization with offices in Calgary, Montreal, Tampa, Toronto, and Vancouver. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute's independence, it does not accept grants from governments or contracts for research.

Retail trade rises sharply

Retail trade jumped 1.3% in August, following two months of decline. A surge in sales by new car dealers propelled the growth. Notable increases were also recorded by furniture, home furnishings and electronics stores, general merchandise stores (including department stores), and food and beverage vendors. These gains were partially offset by declines in the sales of gasoline stations, pharmacies and personal care stores.

Energy sector unchanged

The energy sector was essentially unchanged in August after declining in July. Crude oil production grew partly as a result of improved production facilities becoming operational, and existing facilities being reactivated following routine maintenance in July. However, natural gas production fell, primarily due to weak prices. Furthermore, utilities slipped 0.8%. Oil and gas exploration moved ahead (+1.9%) for a third month in a row after experiencing strong decreases during the February to May period.

The output of the mining sector, excluding oil and gas, leaped 2.9% in August. Both the metal ore mines and non-metallic mineral mines posted strong gains. In particular, copper, nickel, lead and zinc mining production combined reached an all-time high.

Construction posts gain

The construction sector advanced 0.5% in August, a fourth consecutive monthly increase. The gains recorded in residential construction (+0.1%) and in engineering and repair work (+0.9%) overshadowed the slip in non-residential building construction (-0.2%). The construction of multi-unit structures, as well as renovation work, propelled residential construction. However, the construction of single-family homes retreated. The increase in industrial building construction was not enough to offset the decline in commercial and public building construction.

The home resale market fell sharply in August, due primarily to significant declines in sales in Ontario and Quebec. This resulted in a 5.6% drop for the real estate agents and brokers industry, marking a return to a more normal level of activity following record-high transactions in June and July.

Wholesale trade edges up

Wholesale trade rose 0.1% in August. Gains were posted in the trade of farm products, apparel, food products, and computers and other electronic equipment. These gains were neutralized by a retreat in the wholesaling of motor vehicles (including parts), lumber and millwork, and machinery and equipment.

Manufacturing unchanged

Manufacturing stood still in August. The increase in the production of durable goods was offset by the decline in non-durable goods. Of the 21 major manufacturing groups, 11 decreased, accounting for 51% of total manufacturing value added.

Significant gains were made in motor vehicle, clothing, and beverage and tobacco manufacturing. However, the production of chemicals, motor vehicle parts, and sawmills declined.

Industrial production (the output of mines, utilities and factories) increased 0.1% in August. The gain in mining was partially offset by a drop in utilities. In the United States, industrial production remained unchanged in August. The rise in utilities was neutralized by drops in manufacturing and mining.

Other industries

Activities in the finance and insurance sector grew 0.2%. The gains in this sector were partially offset by declines realized as a result of difficulties experienced in the asset-backed commercial paper markets. The accommodation and food services sector rose 0.9% in August. The number of international travellers to Canada advanced 2.4%, particularly that of overnight visitors from the United States (+4.3%).

Note to readers

The monthly gross domestic product (GDP) by industry data are chained volume estimates with 2002 as their reference year. This means that the estimates for each industry and aggregate are obtained from a chained volume index multiplied by the industry's value added in 2002. For the 1997 to 2004 period, the monthly estimates are benchmarked to annually chained Fisher volume indexes of GDP obtained from the constant-price input-output tables.

For the period starting with January 2005, the estimates are derived by chaining a fixed-weight Laspeyres volume index to the prior period. The fixed weights are the industry output and input prices of 2004. This makes the monthly GDP by industry estimates more comparable with the expenditure-based GDP data, chained quarterly.

Revisions and conversion to NAICS 2002 and to reference year 2002

With this release, the monthly GDP by industry program uses the 2002 North American Industrial Classification System (NAICS) instead of NAICS 1997. In addition, the reference year for the chained dollar data and the base year for the constant price data have been changed from 1997 to 2002.

As a consequence, CANSIM tables 379-0017 to 379-0022 have been terminated and replaced with the new monthly table 379-0027. This new table includes changes to the industry detail, largely caused by the conversion to NAICS 2002, which principally affect sector 51 - Information and cultural industries.

The change in the reference year and base year in the new table 379-0027 changes the levels but not the growth rates of the data for the period 1981 to 2001 inclusively, as it essentially consists of a rescaling of the already published data. However, the levels and growth rates for 2002 onward have undergone the regular monthly GDP annual revision process that incorporates the more recent input-output tables for 2003 and 2004, revisions to source data and to seasonal factors, as well as improvements to some of the methodologies used to derive monthly value added by industry.

To help users convert from the terminated CANSIM tables to the new table 379-0027, a concordance between the old and new vector numbers is available. This document also provides a detailed list of the changes to the industry detail.

For more information, contact the dissemination agent (toll-free 1-800-887-4623; 613-951-4623; IAD-Info-DCI@statcan.ca).

The World Economic Forum continues to expand geographic coverage in the Report. Featuring a total of 131 countries, this year’s Report is the most comprehensive of its type. Coverage has been expanded to Puerto Rico, Libya, Oman, Saudi Arabia, Senegal, Syria and Uzbekistan. In addition, Serbia and Montenegro, previously analysed as a single country, are now included separately.

The Report contains a detailed country/economy profile for each of the 131 economies featured in the study, providing a comprehensive summary of the overall position in the rankings as well as the most prominent competitive advantages and competitive disadvantages of each country/economy based on the analysis used in computing the rankings. Also included is an extensive section of data tables with global rankings covering over 110 indicators. (Click on the picture to watch a 6-minute video with the Forum’s senior economist Jennifer Blanke)

This year’s Report also includes a number of discussions of selected countries including Germany, Malaysia, Mexico and the United Arab Emirates, providing an in-depth analysis of the issues affecting national competitiveness.

Canadians are willing to pay more out of their own pockets to preserve national parks, a new study by a University of Guelph researcher has revealed.

In a first-ever survey examining the economic value placed on Canada's national parks by the general population, Will Wistowsky found that 61 per cent of Canadian households were willing to contribute additional funds to help maintain and complete Canada's national park system.

When people were asked how much more they'd be willing to pay, the average amount was $53 per household, with 47 per cent saying they'd be willing to contribute that amount annually.

Multiply that amount by the Canadian population and it adds up to $374 million in one-time funding plus an annual benefit of $176 million.

"This shows how much all Canadians – both park visitors and non-visitors – value their national parks," said Wistowsky, a doctoral student in the School of Environmental Design and Rural Development.

While his research is not intended to put a price tag on national parks, dollar figures allow officials to talk about the benefits of national parks in comparable and concrete terms, he said.

Previous studies have looked at the value of national parks based on gate receipts, said Wistowsky. But that puts pressure on the parks to focus on boosting revenues by increasing the number of users, which will come at the expense of environmental damage.

"This shows how much Canadians value their national parks regardless of whether they visit them."

Despite Canada having one of the world's oldest national parks system there is little information on their actual economic value to Canadian society, said Wistowsky.

His findings are based on questions added to Parks Canada's 2005 national public opinion poll. He was able to survey more than 1,300 respondents.

When asked why they would contribute more, a majority of people said they wanted these areas protected and available for future generations, said Wistowsky.

Although a majority of Canadians were willing to pay more to preserve the parks, he found the economic value placed on national parks differed slightly among provinces.

People in Ontario and Alberta were willing to contribute the most to preserving parks with an average of $57 whereas those surveyed in British Columbia, Manitoba and Saskatchewan would contribute the least with an average of $46.

Likewise the younger the respondent, the more money he or she was willing to pay. Twenty-year-olds would pay $58 whereas 80-year-olds would pay $47.

Despite these differences, an overwhelming majority of respondents supported the federal government using tax dollars to maintain and protect national parks, said Wistowsky.

About 70 per cent of respondents strongly supported the use of tax dollars to maintain the existing national park system.

"Knowing the value of national parks to Canadians and the factors that influence this value is important when it comes to making informed decisions about the management of these areas today and for future generations."

OTTAWA - If the Canadian federal government proceeds with a free trade agreement with Korea as it has promised to do, the impact on Canadian communities would be disastrous, according to a new study.

The study will be released by the Canadian Auto Workers union at the House of Commons Press Gallery on Wednesday.

The study, "Provincial Employment Effects of Canada-Korea Free Trade," finds the job loss would be most acute in Ontario and Quebec, with an expected loss of approximately 17,400 jobs and 8,300 jobs respectively. Even resource rich provinces like Alberta and British Columbia will be set to lose thousands of jobs.

The study builds upon a report released last month, "Canada's Deteriorating Automotive Trade Performance," which detailed the country's growing automotive trade deficit.

The study will be launched at a press conference in coordination with an all-party lobby effort, as CAW leaders, including CAW President Buzz Hargrove, meet with Members of Parliament from across the country, demanding that they recognize the economic damage a Canada-Korea Free Trade Agreement could cause and bring an end to Canada-Korea FTA talks.

Hargrove will be joined by Quebec Director Luc Desnoyers and concerned elected officials Michael Harding, Mayor of the City of Woodstock and Co-chair of the Ontario Mayors for Automotive Investment, Brian McMullan, Mayor of the City of St. Catharines as well as Windsor City Councillor Ken Lewenza Jr.

According to a new study, in 2006, young adults in rural and small towns were more likely to be homeowners than young adults in Canada's three largest metropolitan areas.

The study, published today in Canadian Social Trends, points to housing costs, which are much higher in Canada's largest metropolitan areas, as the main reason for this gap. The relative scarcity of rental housing in less populated areas may also be a factor, it said.

In Canada, 6 out of every 10 young people aged 25 to 39 in Canada who did not live with their parents owned their own home in 2006, according to the study, which was based on data from the 2006 General Social Survey (GSS).

However, the proportion was highest (71%) among young people in this age group who lived in a rural area or in a small town.

In contrast, 54% of those living in the census metropolitan area of Vancouver and 53% of those living in Toronto owned their own home. The proportion fell to less than one-half (48%) among those living in Montréal.

Overall, three-quarters of young adults aged 25 to 39 who no longer lived with their parents reported in the GSS that owning their own home was very important to them.

However, several factors in the last few years may have had a negative impact on home ownership for young people. These include rising housing prices, particularly in large urban centres, their desire to stay in school longer, and their decision to delay various milestones in life, such as marriage.

Income: A major determining factor

Despite the impact on home ownership rates of various factors relating to individuals themselves, it was household characteristics that mattered most to a person's chances of being a homeowner.

Young adults were most likely to own their own home if they were married and had children, as well as if they had higher household incomes.

The study found that household income is one of the factors, if not the single factor, with the biggest impact on the likelihood of owning a home.

Holding the other factors such as age, highest level of schooling, living arrangements and place of residence constant, the odds of being a homeowner were 1.7 times higher for young adults with a household income of over $100,000 than for those with an income between $50,000 and $80,000.

This association is hardly surprising and reflects results of numerous earlier studies. Obviously, insufficient income represents the major obstacle to home ownership. This was quite apparent when it came to living in larger urban centres.

Just 22% of young adults reporting a household income of less than $30,000 per year were homeowners in 2006. On the other hand, 68% of those with a household income of $50,000 to $80,000 were homeowners, as were 82% of those with an income of $100,000 or more.

Location also made a significant difference. Two-fifths (40%) of young adults who had household incomes of under $30,000 a year but who lived in rural settings were homeowners. This was more than twice the proportion of only 16% among their counterparts who lived in one of Canada's six largest metropolitan areas.

Even for those young people with the highest household incomes ($80,000 or more a year), there was a difference, although not as great. The study found that 78% of these big city dwellers were homeowners, compared with 85% of those living in rural areas and small towns.

Home ownership rates vary with age, living arrangements, employment

The study found, not surprisingly, that home ownership rates increase directly with age, and are strongly associated with living arrangements and employment.

Only 38% of young people aged between 25 and 27 owned their own homes in 2006. This proportion rose to 63% among individuals aged 31 to 33, and 73% among those aged 37 to 39.

Even when all other factors that influence home ownership are held constant, the impact of age remains statistically significant. For example, the odds that people aged 37 to 39 would own their own home were 2.2 times higher than those for individuals aged 25 to 27.

Home ownership also varies strongly according to living arrangements. In 2006, 79% of married young adults who had children owned their own home. This proportion was only 40% among individuals living alone and 33% among lone parents.

GSS data show that even when the impact of income and other factors are held constant, young people with temporary jobs had 40% lower odds of owning their own home than people with permanent employment.

Few recent immigrants own their own home

GSS data show that the number of years spent in Canada since immigration is associated with the probability of being a homeowner.

Almost two-thirds (64%) of young adults born in Canada and no longer living with their parents were homeowners.

However, this was true of less than half (48%) of their counterparts who had immigrated to Canada five to nine years prior to the survey, and of only 20% of immigrants who had arrived in Canada sometime in the five years preceding the 2006 GSS.