Addressing a massive Canada Day crowd, Prime Minister Stephen Harper said Canadians have faced a challenging year but "are a strong and resilient people."

Harper, speaking to tens of thousands of Canadians gathered on Parliament Hill, spoke optimistically about the current recession.

"Looking around the world, Canada has fared better than most and looking to the future, Canada is poised to lead," he said.

The prime minister also paid tribute to how far Canada has come in its first 142 years, and where it will go in future.

"We must never forget that our country, our way of life, did not come about by accident," Harper said.

"We are a product of diverse peoples from all corners of the Earth, but committed to common values, a country that cherishes freedom, democracy and justice, a country that offers opportunity to all who seek it, a country proud of our past and confident of our future."

Harper said there is much to look forward to in the future, including the 2010 Olympic Games in B.C.

He said the Games will be the "biggest and best" in history and he urged Canadians to cheer on their athletes in the year to come.

Later Wednesday, in front of the same crowd, Gov. Gen. Michaelle Jean paid tribute to Canada's youth.

"Through our youth, we will come to embody, within our borders and beyond, the Canada we still dream about, whose full potential we hope one day to realize," she said.

Celebrations overseas

In Ma'sum Ghar, Afghanistan, some Canadian soldiers marked the day by putting the Maple Leaf on the outside of their tanks.

Trooper James Lajoie, of Calgary, said that every day is a good day to be a Canadian. He placed a Maple Leaf tie over his combat fatigues to celebrate the day.

Chief of Defence Staff Gen. Walter Natynczyk said Canadians soldiers are still on duty, despite the fact that it is July 1.

But he said they will still take a moment "to celebrate the fact that they are Canadians and they are proud."

Natynczyk said the soldiers would likely have a ceremonial drink to mark the day.

"At the end of the day, they just might have a little bit of a beverage, they might even have a tin of beer to celebrate being Canadian," he said while speaking to CTV's Roger Smith on Wednesday morning in Ottawa.

Harper also paid tribute to those serving overseas.

"We celebrate the most peaceful, prosperous and enduring democracy the world has ever known. We reflect on the wisdom of our ancestors who built this great land. And we give thanks to those brave Canadians who risk their lives to defend us, here and around the world," Harper said in a statement Tuesday.

Canada Day events

In Nova Scotia, about 3,000 Haligonians showed up for performances from the National Band of Naval Reserve and the International Tattoo choir, as well as a flyby by 12 Wing Shearwater on Wednesday morning.

In Montreal, a series of events -- including an international wakeboarding competition - took place all day long in the quays of the city's Old Port.

And in Quebec City, a rock concert featuring Finger Eleven, Jonathan Roy, Longue Distance and Pistolet Rose kicked off at 7 p.m.

In Toronto, however, there were fewer Canada Day events than in past years.

Because of an ongoing civic union strike, all city-run Canada Day events were cancelled. Celebrations were still taking place at Harbourfront Centre, Ontario Place, the Toronto Zoo, Woodbine Park and Downsview Park among other locations.

At Winnipeg's The Forks, a late-night concert was to be capped by a performance by the city's symphony orchestra and a fireworks show.

In Regina, celebrations were marked with family activities, some fireworks, as well as a day-long beer garden and set of musical performances.

Further west in Alberta, city-wide celebrations took place in Calgary and Edmonton, where the provincial capital promised to launch "the biggest fireworks shell in Canada."

In Calgary, a concert at Olympic Park was set to kick off at 7:30 p.m. local time.

In Vancouver, thousands were expected to take part in a series of day-long events, including a massive downtown parade and a concert on Granville Island. At nightfall, the city was poised to put on a massive fireworks show in the Burrard Inlet, which was expected to draw thousands.

With files from The Canadian Press