Natural Resources & the Economy

Natural Resource Development Supports a Strong Canadian Economy

With the world's second-largest landmass and just half a per cent of its population, Canadians are blessed to have an incredible abundance of natural resources. We’re a top producer and exporter of many, ranging from wheat and lobster to oil and gas to uranium and softwood. And, to no surprise, these valuable resources – oil, natural gas, forests, minerals and metals, fertile land, running water, and teeming coastlines – have positioned our country as one of the wealthiest in the world.

It’s no secret that Canada’s natural resource industries play a vital and irreplaceable role in our national economy. The energy, forestry, mining, and agriculture sectors account for over one-fifth of all economic activity and support 1 in 7 jobs nationwide. They also represent more than half of our annual merchandise exports and account for 45% of our manufacturing output.

Our natural resources help "pay the bills" for imported manufactured goods and services we need to survive and thrive. Meanwhile, the tens of billions of dollars in revenues generated by these industries play a significant role in underpinning our standard of living, helping to pay for our social programs such as healthcare, education, law enforcement, and public roads and other infrastructure to name a few examples.

But with all that natural resource wealth comes its challenges. Anti-development policies over the past several years have impeded Canada’s ability to leverage its resource abundance, contributing immensely to our current economic challenges including those surrounding trade diversification. With nearly $670 billion in natural resource projects suspended or cancelled between 2015 and 2023, it’s time Canada get back to playing to its strengths to create a better, brighter, and more prosperous future for all Canadians.

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Canada’s Economy & Natural Resources: Facts

• Natural resources support 3 million jobs across Canada – or 1 in 7 jobs, or 15% of all jobs nationwide ^[1]
• Natural resources generated $464 billion in real gross domestic product in 2023, accounting for approximately 21% of the national economy ^[1]
• The natural resource industries offer annual wages that pay $25,000 more than the national average ^[1]
• Natural resources accounted for $377 billion in exports in 2023, accounting for nearly 50% of Canada’s total merchandise exports annually ^[1]
• Natural resources created a $228 billion trade surplus in 2023 (mostly oil & gas), helping to offset trade deficits in other sectors of the economy ^[1]
• Natural resources account for 45% of Canada’s manufacturing output according to the most recent data available ^[2]

A Strong Resource Economy = A Strong Canada

Canada faces mounting challenges that demand urgent action. Global trade tensions, when combined with a significantly underperforming economy compared to our peers, have highlighted Canada's need to streamline regulatory processes and reduce its over reliance on the U.S. By developing new coast-to-coast infrastructure including pipeline corridors and high-voltage power grids, we can reach new trading markets and help maximize the value of our natural resources in the process.

From LNG facilities to critical mineral mines, our nation requires a new and robust infrastructure development plan to diversify resource exports, achieve strategic independence, and boost economic productivity. Like the historic nation-building projects of the Trans-Canada highway and national railroads, these developments have the potential to mend rising divisions between regions of our country while securing prosperity for generations to come. To be successful will require bold thinking and collaboration between businesses and governments to unlock our full economic potential.

The time has come to expedite the development of new pipelines, powerlines, ports, railways, and roads with unprecedented speed and vision, securing our economic future and independence.

Join Us Today

Join us today in support of Canada's natural resource sectors for a brighter future for our families and country. Together, we can build a stronger, more prosperous Canada that creates lasting opportunities for all Canadians.

This isn’t going to change if we don’t make Canada an easier place to invest in major resource projects.

We need to urgently build pipelines, powerlines, ports, railways, and roads.

It’s time for a new approach. pic.twitter.com/ZDny9hpqE2

— Canada Action (@CanadaAction) April 3, 2025

SOURCES:

_{1 - https://chamber.ca/news/investing-in-natural-resources-sector-a-solution-to-canadas-productivity-problem-report-says/}

_{2 - https://macdonaldlaurier.ca/canada-resource-bounty-release/}