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Glossary
Putting together our Canada Facts series has introduced us to many new terms and concepts. We’ve compiled definitions of key terms to help you and us better understand the information we come across and include in our articles.
What are census metropolitan areas?
A Census Metropolitan Area (CMA) in Canada is a geographic region defined by Statistics Canada that consists of one or more adjacent municipalities centered around a core urban area (known as the "population centre"). To be classified as a CMA, the area must meet the following criteria:
Population Threshold: The core urban area must have at least 100,000 people, with at least 50,000 living in the core.
Economic and Social Integration: Surrounding municipalities are included in the CMA if at least 50% of their workforce commutes to the core urban area.
Continuous Urban Growth: Boundaries are adjusted over time to reflect changing population patterns.
What are census subdivisions?
A Census Subdivision (CSD) in Canada is a municipal or administrative area defined by Statistics Canada for census purposes. It typically corresponds to a municipality (such as a city, town, or village) or an equivalent area in regions without incorporated municipalities. CSDs have the following features:
Municipality-Based: Most CSDs align with local government boundaries (e.g., cities, towns, rural municipalities).
Non-Municipal Areas Included: Some CSDs cover areas that aren’t incorporated municipalities, such as Indian reserves, unorganized territories, and rural districts.
Smallest Administrative Unit for Census Data: CSDs are used to organize population data at a local level, allowing for detailed demographic and economic analysis.
CSDs can have different designations depending on the province or territory. Some common types include: City ,Town Village, Municipality, Indian Reserve, Rural Municipality (common in Manitotba, Saskatchewan, and Alberta, and Unorganized Area.
What are constant dollars?
Constant dollars are a way of measuring the real value of money over time by adjusting for inflation. Since the purchasing power of money changes—meaning a dollar today buys less than it did in the past—using constant dollars allows for a more accurate comparison of dollar amounts across different years.
For example, if we want to compare the average income in 1990 to today’s income, simply looking at the dollar amounts wouldn’t be fair because inflation has caused prices to rise. Instead, economists adjust past values to today’s prices (or vice versa) using a measure like the Consumer Price Index (CPI). This adjustment removes the effects of inflation, allowing us to see whether incomes have truly increased in terms of purchasing power.
Constant dollars are often used in economics, finance, and policy analysis to compare wages, GDP, or other financial indicators over time in a meaningful way.
To convert current dollars of any year to constant dollars, divide them by the index of that year and multiply them by the index of the base year you choose (remember that the numerator contains the index value of the year you want to move to). For example, using this index, $10,000 in 1997 would be 12,622 in 2008 constant dollars ($10,000 × 114.1/ 90.4 = $12,622).
What are chained dollars?
Chained dollars are a way to measure the real value of money over time while accounting for both inflation and changes in people's buying habits. They improve upon constant dollars by using a more flexible approach to adjusting for price changes.
Instead of using a fixed base year like constant dollars, chained dollars update the base year continuously, linking (or "chaining") each year's prices to the next. This method better reflects how consumers shift their spending when prices change. For example, if the price of beef rises, people might buy more chicken instead. Chained dollars capture these shifts, making economic comparisons more accurate.
Chained dollars are often used in economic indicators like Gross Domestic Product (GDP) to give a clearer picture of real economic growth, free from both inflation and distortions caused by fixed price assumptions.
What is the consumer price index?
The Consumer Price Index (CPI) is one of the most widely used measures of inflation. Produced by Statistics Canada (StatCan), the CPI compares the price of a fixed basket of goods and services — about 700 or so — Canadians typically buy. The goods and services included in the CPI are divided into eight major components: food; shelter; household operations, furnishings and equipment; clothing and footwear, transportation; health and personal care; recreation, education and reading; and alcoholic beverages, tobacco products and recreational cannabis.
What are current dollars?
Current dollars refer to the actual money value in a given year, without adjusting for inflation. They represent prices, wages, or economic values as they are at the time they are measured.
For example, if the average salary in 2000 was $40,000 and in 2025 it is $70,000, these figures are in current dollars because they reflect the amounts in their respective years. However, due to inflation, $70,000 in 2025 may not necessarily have much more purchasing power than $40,000 did in 2000.
Current dollars are useful for understanding nominal values at a specific time, but they do not account for changes in the cost of living. To make meaningful comparisons across different years, economists often convert current dollars into constant or chained dollars, which adjust for inflation.
What is international merchandise trade
International merchandise trade refers to the import and export of physical goods between Canada and other countries. It includes the movement of tangible products (such as raw materials, manufactured goods, and agricultural products) across borders, excluding services. Examples of physical goods include raw materials such as oil, gold, copper, and lumber, and finished goods such as automobile parts, furniture, fully assembled vehicles.
What is life expectancy at birth?
Life expectancy at birth is the average number of years a newborn is expected to live, assuming that current mortality rates remain constant throughout their lifetime. It is a key measure used in demographics and public health to assess the overall health and well-being of a population.
This statistic is influenced by factors such as medical advancements, nutrition, living conditions, and disease prevalence. For example, in countries with high-quality healthcare and sanitation, life expectancy tends to be higher, while in areas with poor healthcare access or high infant mortality rates, it tends to be lower.
It's important to note that life expectancy at birth is a statistical estimate based on current trends. If health conditions improve or worsen over time, actual lifespans may differ from the projected figures.