The 1950s in America

Gross national product of Canada

by Nancy M. Gordon

Definition Canada’s national total of consumption outlays, private investment inside the country, and expenditures of governments for both goods and services, minus imported goods and services

The growth of Canada’s economy during the 1950’s marked its inclusion among the developed countries of the world, especially as the Canadian standard of living began to approximate that in the United States.

During the 1950’s, Canada’s gross national product (GNP) grew substantially. Between 1950 and 1959, the GNP grew by two-thirds. Measured in 1971 dollars, Canada’s gross national product grew in 1950 from C$33.7 billion to C$51.7 billion in 1959. The real gross domestic product (GDP), that is, the GNP adjusted for price inflation, grew during the decade at a rate never before attained—6.55 percent per year. The real GDP per capita also grew at a rate higher than ever before—3.77 percent per year.

The Canadian dollar, initially pegged to the U.S. dollar, fluctuated at around par for most of the decade until the Bank of Canada loosened monetary policy as the economy slowed down during the late 1950’s. The Canadian dollar then declined to around $0.92 (U.S.).

cg_1950-GNP_Canada.tif

During the early 1950’s, growth was propelled partly by inflation and partly by the stimulus of the Korean War. Unemployment ran at about 4.7 percent per year. However, by the late 1950’s, growth diminished and unemployment began to rise. This was due in part to a restriction in some of the export markets that earlier had fueled Canadian growth, notably the growth of competition for Canada’s grain exports and its exports of minerals.

Impact

The growth of Canada’s gross national product was fueled in large measure by new investment, both public and private. The government undertook the development of the country’s infrastructure, notably with the building of the Trans-Canada Highway and the construction, in cooperation with the United States, of the St. Lawrence Seaway, which opened up the provinces of Quebec and Ontario to world commerce. In particular, the seaway facilitated shipments of grain, oil, and ore from the center of the country to the outside world.

Subsequent Events

The investments of the 1950’s enabled Canada’s economy to recover during the 1960’s from the modest downturn of the late 1950’s. The country’s production of minerals continued to expand sharply—Canada was the world’s largest producer of nickel—and the development of new mines fueled further expansion. Public expenditure continued to rise at the provincial and municipal levels.

Further Reading

1 

Bothwell, Robert, Ian Drummond, and John English. Canada Since 1945: Power, Politics, and Provincialism. Rev. ed. Toronto: University of Toronto Press, 1989. Although the book covers politics primarily, it has several chapters on the development of the economy.

2 

Lamontagne, Maurice. Business Cycles in Canada: The Postwar Experience and Policy Directions. Toronto: James Lorimer, 1984. Provides the historical figures for GNP.

3 

Marr, William L., and Donald G. Paterson. Canada: An Economic History. Toronto: Macmillan, 1980. Provides data on growth rates in comparison to earlier periods as well as the 1960’s.

4 

Rea, K. J. The Prosperous Years: The Economic History of Ontario, 1939-1975. Toronto: University of Toronto Press, 1985. Although focused primarily on Ontario, Canada’s most populous and most industrialized province, it gives a good picture of overall development.

Citation Types

Type
Format
MLA 9th
Gordon, Nancy M. "Gross National Product Of Canada." The 1950s in America, edited by John C. Super, Salem Press, 2005. Salem Online, online.salempress.com/articleDetails.do?articleName=1950_335.
APA 7th
Gordon, N. M. (2005). Gross national product of Canada. In J. C. Super (Ed.), The 1950s in America. Salem Press. online.salempress.com.
CMOS 17th
Gordon, Nancy M. "Gross National Product Of Canada." Edited by John C. Super. The 1950s in America. Hackensack: Salem Press, 2005. Accessed December 14, 2025. online.salempress.com.