Canada isn't just substantially smaller than the U.S. in terms of population (the U.S. has about 10x more people), but the Canadian economy is very different from ours. They are very resource-oriented and production-oriented up there, with so much of their economy tied to foreign trade. I may be wrong about this, but I believe the single biggest factor in Canada's relatively strong economy is that prices for all kinds of commodities that are produced in abundance in Canada (oil being a good example) have risen dramatically in the last few years. I'm not sure this can go on indefinitely, as high prices ultimately crimp demand and may result in declining economic fortunes in various business sectors (lumber prices have apparently dropped significantly in recent months).
“(lumber prices have apparently dropped significantly in recent months).”
Lumber has dropped since April because when prices climbed , due to a short term increase in demand , the mills all increased production. Demand then fell in April when the US housing credit expired.
However, Canada is much more friendly to using its natural resouces like timber. British Columbia and Alberta have been very proactive in cutting the dead beattle kill Lodgepole pine in their provences. To the contrary, the beattle kill dead timber in the US on federal lands will burn or rot before it is ever cut.