Canada has one of the highest levels of economic freedom in the world and is considered one of the most stable economies. Its economic freedom score is 78.2, making its economy the ninth freest in the 2020 Index by the US-based Heritage Foundation. In the Human Freedom Index by Fraser’s Institute which measures personal freedom including freedom of movement, speech, assembly and religion —alongside economic freedom — Canada ranks sixth in the world.

Business freedom in Canada remains at a high level. Labour laws vary by jurisdiction. There is a shortage of skilled trade professionals. In addition to subsidising healthcare, the government funds large subsidies for a wide range of business sectors including energy and agriculture.

Canada has 15 preferential trade agreements in force. Foreign investment in some sectors, including aviation and telecom, is capped by the government. The banking sector, dominated by six major banks, remains sound. A wide range of nonbank financial companies operates in a prudent regulatory environment.