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The Canadian economy developed very quickly after the war due to both national and international factors.Domestically，pent⁃up savings from wartime created demand for consumer goods and eased the conversion of military industries to civilian production.Internationally，the recovery needs of Britain and Western Europe provided large markets for Canadian products since most European countries were devastated by the war.Capital investment from the United States contributed to the rapid growth of the Canadian economy.In addition，rich deposits of oil and gas，iron ore and uranium were discovered after the war.To meet the needs of industrial expansion，the Canadian government built new railroads and created a deep water route throughout the entire Great Lakes system in 1959 in cooperation with the U.S.government.In 1965，the Trans⁃Canada Highway was completed.

With economic growth，the population also shot up from 12 million in 1946 to 16 million in 1961 due to higher birth rates and immigration.Industrial development also promoted urbanization.By 1961，over 70％ of the population lived in cities，with Montreal and Toronto alone accounting for 20％ of the total.

Amid this prosperity，the Canadian government began to lay the foundations of a welfare state.In 1948，a national health program was enacted to improve hospital facilities.In 1951，a universal old⁃age pension plan was instituted to provide a monthly payment to all citizens over the age of 70.In 1956，the Unemployment Assistance Act addressed the needs of the jobless.Then in 1957，the Hospital Insurance and Diagnostic Act was passed to provide financial aid to provinces which offered hospital insurance programs.Canadians enjoyed a better quality of life than ever before during the two decades after World WarⅡ.

Attracted by the Canada’s prosperity，Newfoundland finally joined the Confederation in 1949，becoming the nation’s 10th province.With this，Canada completed its territorial growth.Meanwhile，the old imperial relationship between Canada and Britain became weaker and Canada continued to consolidate its sovereignty.The Supreme Court of Canada replaced Britain’s Judicial Committee of the Privy Council as the final court of appeal.The Canadian Parliament was also gained the power to amend the constitution regarding federal affairs，and a distinct Canadian citizenship was created.In 1952，a native⁃born Canadian was appointed Governor⁃General for the first time.

Amidst the tremendous economic prosperity，Canadians began to pay more attention to their cultural life.In 1957，Parliament passed a law creating the Canada Council to promote education and cultural activities.After 1960，the various aspects of cultural life developed rapidly.The number of schools increased quickly and the size of universities expanded.The Canadian Broadcasting Corporation launched Canadian Television with programs in both French and English.Literature，visual arts，music，and sports all developed quickly and achieved admirable accomplishments.

In the 1960s，the Liberal Party government expanded the social welfare system.It introduced the Canada Pension Plan in 1965 and the Canadian Assistance Plan in 1966.In the same year，Parliament passed the Medical Care Act.All these increased benefits for the Canadian citizens.However，the economy suffered a downturn in late 1960s and remained stagnant in the 1970s and early 1980s，with unemployment and inflation rates both remaining high.By 1982，industrial production stopped growing and the average Canadian worker’s income fell from the second in the world in 1970 to the 14th in 1982.

After years of economic malaise，Canada’s economy began to grow again in the late 1980s，expanding by over 20 percent from 1986 to 1995.However，the recovery ended with the global economic downturn in 2007.Canada’s economy today is still in the process of recovering from the effects of the Great Recession.