GRAPHS: Canada’s Economic Performance and the Impact of Natural Resources

Canada's Top Exports are Natural Resources

Every year, Canada's top exports vary slightly. However, generally speaking, oil and natural gas account for around a quarter of all Canadian merchandise goods exports annually. The graph above shows just how important natural resources are to Canada's overall balance sheet, and how they help "pay the bills" for our imports of goods and services.

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.

OECD Real GDP Per Capita Growth: 2015-2024

Canada ranks second last among the OECD nations when it comes to real gross domestic product (GDP) growth between 2015 and 2024, highlighting our country's productivity problem at large.

Canada an Economic Laggard Over Past Decade

Stifling investment in job-creating, prosperity-generating natural resource sectors through roadblock legislation like Bill C-69, Bill C-48, and the oil and gas emissions cap has contributed to significant economic hardship for Canadians over the past several years. Compared to many of our Western peers, our economic performance has been abysmal.

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.

Canada Sees Net Investment Outflow to the U.S.

After several years of roadblock legislation that stifled investment across various sectors of the Canadian economy - especially energy, forestry, mining, and agriculture - total net capital outflow from Canada to the United States is estimated at $460 billion between 2015 and 2022. For comparison, Canada's total federal debt is approaching $1.3 trillion.

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.

Canada Places 23rd in Ease-of-Doing-Business Index

It's no secret that Canada's overburdening regulatory processes have acted to drive away capital investment to other more competitive jurisdictions abroad. Between 2006 and 2020, Canada went from fourth on the World Bank's Ease-of-Doing-Business Index to 23rd in 2020.

Time Required for Mine Start-Up

It takes about 20 years for a mine to begin operations in Canada, much longer than in various competitive mining jurisdictions abroad, including Chile, Australia, and the Congo.

OECD Construction Permit Timelines

Canada ranks second last in the OECD in many categories, this time for construction permitting timelines among the OECD.

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.

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 that oil and natural gas are 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, poor GDP per capita growth, and alarming economic performance over the past several years, 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.

Join us today to learn more!

Nuclear power is a major contributor to Canada's electric grid and our economic prosperity as a whole.

As we look the future, Canada will need all forms of energy and nuclear will play a very important role for many years to come. pic.twitter.com/J64O5BXk9m

— Canada Action (@CanadaAction) August 1, 2025