Canada's current economic landscape reveals an important reality: our natural resources sector is essential to our national prosperity.
Recent data paints a clear picture of an economy where energy, forestry, mining, and agriculture make an oversized and irreplaceable contribution to our standard of living, something Canadians should get behind for a stronger and more prosperous future for our families.
While Canada faces challenging productivity metrics and lagging GDP growth compared to other developed nations, our natural resources sector stands out as a cornerstone of economic strength.
The graphs below show just how important these industries are to Canada while also showing the current economic plight our country is facing — highlighting the need for all Canadians to support our job-creating, prosperity-generating resource sectors.
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Canada vs. the OECD: 2014-2022
Between 2014 and 2022, Canada experienced one of the lowest per-person GDP growth rates among OECD countries at 0.6%. This emphasizes Canada's relative economic underperformance compared to its international peers.
Canada vs. the OECD: 2030-2060
Between 2030 and 2060, Canada is projected to have the lowest per-person GDP growth rate among OECD nations, at 0.78%. This highlights concerns about Canada's long-term economic competitiveness compared to its global peers.
Canada’s Economic Performance Among G7 Nations
In 2021, Canada ranked second-lowest in labour productivity among G7 nations, with $62 GDP per hour worked, ahead of only Japan. The United States led the group at $85 GDP per hour worked, underscoring Canada's productivity gap.
Canada’s Standard of Living vs. Peers
Since 2015, Canada’s GDP per capita has lagged behind both the OECD average and the United States, showing a widening gap in recent years. This indicates that Canada’s standard of living is not keeping pace with that of its international counterparts.
Canadian Labour Productivity Down 3 Years
Labour productivity in Canada has declined for three consecutive years, marking the longest downturn since the 1980s. The graph highlights a significant shift from periods of productivity growth to recent negative trends.
Canadian GDP by Industry
In 2023, real estate was the largest contributor to Canada's GDP at $292 billion, followed by natural resources and manufacturing, each contributing $213 billion. These industries highlight the key sectors driving Canada's economic output.
Natural Resources GDP by Province
In 2023, natural resources contributed 21% of Canada's national GDP, with the largest shares in provinces like Alberta (26%) and Saskatchewan (28%). This emphasizes the key economic role natural resources play across provinces and territories.
Canadian Productivity by Industry
In 2023, the natural resources sector was 2.5 times more productive than the average Canadian industry, ranking among the top industries in productivity, just behind utilities and mining/oil and gas extraction.
Natural Resources Among Highest Paying Sectors
The natural resources sector offers one of the highest average annual compensations in Canada at $101,649, which is $25,000 above the national average across all industries. It ranks fourth, just behind utilities, finance, and information industries.
Canadian Sells Resources to Buy Goods & Services
Canada's significant net exports of natural resources, particularly energy products ($139.8 billion), offset large deficits in imports of consumer goods, electronics, and vehicles. This highlights the critical role natural resource exports play in balancing Canada's trade.
Importance of Canadian-U.S. Trade
This graph shows Canada's monthly exports to the United States in billions of dollars from 2016 to 2024. The graph underscores the importance of the United States as a major trading partner for Canada, with a strong dependence on natural resources and energy exports driving their trade relationship.
Canada’s Top Exports to the U.S.
Energy products dominate Canada's exports to the United States, making up 31.7% of total exports, followed by motor vehicles and parts at 14.3%. Other notable categories include consumer goods (11.5%) and metal products (9.2%), reflecting a focus on natural resources and manufacturing.
Without Energy, Canada Would Be Broke
Canada's trade balance relies heavily on oil and gas, which offsets significant deficits in other sectors. Without oil and gas exports, Canada would face a substantial and persistent trade deficit to the tune of a trillion dollars over the past decade – essentially making all Canadians poorer.
Importance of Oil & Gas to the Canadian Economy
A recent series of polls conducted by Nanos Research on behalf of the University of Ottawa has found that a majority of Canadians find oil and natural gas is important to Canada's economy.
Canada Needs a Strong Economy
The evidence is clear: Canada's economic well-being is intrinsically linked to our natural resources sector.
With lagging labour productivity, declining GDP per capita growth, and alarming economic performance, Canadians cannot afford to overlook or undervalue the crucial role that natural resources play in sustaining our economy.
As we face increasing global competition and economic challenges, supporting our resource sectors isn't just an option - it's essential for maintaining our standard of living, funding our social programs, and securing a prosperous future for all Canadians.
The graphs above show that natural resources remain the bedrock of Canada's economy, and embracing this reality is key to strengthening our economic foundation and ensuring long-term national prosperity.
We can meet global demand for our energy while creating meaningful economic opportunities for our families.
— Canada Action (@CanadaAction) December 15, 2024
Talk about a win-win. #CdnPoli pic.twitter.com/T9sWyW5aAr