averaging about 4%. With its
great natural resources, skilled labor force, and modern capital plant,
Canada has excellent economic prospects. In mid-1990, however, the
long-simmering problems between English- and French-speaking areas
became so acute that observers spoke openly of a possible split in the
confederation; foreign investors were becoming edgy.

GDP: $513.6 billion, per capita $19,600; real growth rate
2.9% (1989 est.)

Inflation rate (consumer prices): 5.0% (1989)

Unemployment rate: 7.5% (1989)

Budget: revenues $79.2 billion; expenditures $102.0 billion,
including capital expenditures of $1.8 billion (FY88 est.)

Exports: $127.2 billion (f.o.b., 1989);
commodities--newsprint, wood pulp, timber, grain, crude petroleum,
natural gas, ferrous and nonferrous ores, motor vehicles;
partners--US, Japan, UK, FRG, other EC, USSR

Imports: $116.5 billion (c.i.f., 1989);
commodities--processed foods, beverages, crude petroleum, chemicals,
industrial machinery, motor vehicles, durable consumer goods, electronic
computers;
partners--US, Japan, UK, FRG, other EC, Taiwan, South Korea, Mexico

External debt: $247 billion (1987)

Industrial production: growth rate 2.3% (1989)

Electricity: 103,746,000 kW capacity; 472,580 million kWh produced,
17,960 kWh per capita (1989)

Industries: processed and unprocessed minerals, food products, wood and
paper products, transportation equipment, chemicals, fish products, petroleum
and natural gas

Agriculture: accounts for 3% of GDP; one of the world's major producers
and exporters of grain (wheat and barley); key source of US agricultural
imports; large forest resources cover 35% of total land area; commercial
fisheries provide annual catch of 1.5 million metric tons, of which 75% is
exported

Illicit drugs: illicit producer of cannabis for the domestic
drug market

Aid: donor--ODA and OOF commitments (1970-87), $2.2 billion

Currency: Canadian dollar (plural--dollars); 1 Canadian dollar
(Can$) = 100 cents

Exchange rates: Canadian dollars (Can$) per US$1--1.1714 (January
1990), 1.1840 (1989), 1.2307 (1988), 1.3260 (1987), 1.3895 (1986),
1.3655 (1985)

Fiscal year: 1 April-31 March

- Communications
Railroads: 80,095 km total; 79,917 km 1.435-meter standard gauge
(includes 129 km electrified); 178 km 0.915-meter narrow gauge (mostly unused);
two major transcontinental freight railway systems--Canadian National
(government owned) and Canadian Pacific Railwa