Natural Resources & the Canadian Economy

Natural Resources & the Canadian Economy

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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 of these resources, ranging from wheat and lobster to oil and gas to uranium and softwood. And, unsurprisingly, these valuable resources have positioned our country among the wealthiest in the world.

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 are also responsible for 50% of our annual merchandise exports and 45% of our manufacturing output.

In other words, 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 revenue generated by these industries play a significant role in underpinning our standard of living and quality of life, helping pay for our social programs such as healthcare, education, emergency services, roads and other public infrastructure, plus lots more.

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 challenging economic conditions in a country lacking trade diversification. With nearly $670 billion in natural resource projects suspended or cancelled between 2015 and 2023, it’s time Canada gets 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

3 Million Jobs
Natural resources support 3 million jobs across Canada — or 1 in 7 jobs, or 15% of all jobs nationwide as of 2023 [1]
$464 Billion
Natural resources generated $464 billion in real gross domestic product in 2023, accounting for approximately 21% of the national economy [1]
$25,000 More
The natural resource industries offer annual wages that pay $25,000 more than the national average [1]
$377 Billion
Natural resources accounted for $377 billion in exports in 2023, representing nearly 50% of Canada’s total merchandise exports annually [1]
$228 Billion
Natural resources created a $228 billion trade surplus in 2023, mostly from oil and gas, helping offset trade deficits in other sectors of the economy [1]
45%
Natural resources account for 45% of Canada’s manufacturing output, according to the most recent data available [2]
Sources: [1] Canadian Chamber of Commerce    [2] Macdonald-Laurier Institute

A Strong Resource Economy = A Strong Canada

Canada faces mounting challenges that demand urgent action. Global trade tensions, combined with a significantly underperforming economy relative to our peers, have highlighted Canada's need to streamline regulatory processes and reduce its overreliance on the U.S. By developing new coast-to-coast infrastructure, Canada can reach new trading markets and help maximize the value of its natural resources.

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 unite regions of our country while securing prosperity for generations to come. To be successful, this 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.

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Join us today to support 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.

Natural Resources & the Canadian Economy: FAQ

Below are some common questions about natural resources and their importance to Canada’s economy.

How do natural resources affect Canada’s economy?
Natural resources create immense benefits for the Canadian economy, including hundreds of billions of dollars in GDP impact, millions of jobs, and tens of billions of dollars in government revenues that fund critical social programs such as healthcare and education.
What percentage of the Canadian economy is natural resources?
The energy, forestry, mining, and agriculture sectors together accounted for 21% of the national economy in 2023, according to an in-depth analysis by the Canadian Chamber of Commerce.
What are Canada’s top 3 natural resources?
By value, Canada’s top three natural resources are oil and natural gas, minerals and metals, and the agriculture/agri-food sector – the three of which account for the largest share of total exports and have the largest economic impact on the economy.
Is Canada rich with natural resources?
Yes, Canada is one of the world's top resource-rich countries. As of 2021, Canada was home to an estimated $33.2 trillion in natural resources, ranking fourth globally, according to a Visual Capitalist infographic.
Which Canadian province is the richest in natural resources?
From a value perspective, Alberta is currently the most valuable natural resource-rich province in Canada because of its immense oil and natural gas reserves, which lead the country in GDP impact; however, each province and territory has an immense abundance of natural resources in the ground, some of which have developed them more than others.

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/