In a 2005 study, the International Monetary Fund (IMF) concluded that "Canada is characterized by a relatively high degree of flexibility, of a magnitude comparable if not larger than many other industrialized countries, with the likely exception of the United States." 2 For purposes of this study, the IMF looked at different indicators of economic flexibility – with uniform results.
For example, the reallocation of production resources across sectors, in response to changing economic conditions over the 1980-2000 period, was quite high in Canada compared with other major industrialized countries (except the United States) - indicating a high degree of economic flexibility. The IMF also compared rates of firm turnover, and of job creation and destruction, across countries.