10 Quotes on the Importance of Natural Resources to the Canadian Economy

10 Quotes on the Importance of Natural Resources to the Canadian Economy

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10 Quotes on the Importance of Natural Resources to the Canadian Economy cover

Canada’s vast and diverse landscapes hold an immense wealth of natural resources that have long served as the bedrock of the nation’s economy. Accounting for over 19% of Canada’s nominal gross domestic product (GDP) in 2022, the energy, forestry, and mining sectors support 1.7 million direct and indirect jobs across the country.

If we include the entire agriculture and agri-food sector, these numbers quickly jump up to more than a quarter of gross domestic product (GDP) and 4 million jobs from coast to coast. Additionally, resources account for 45% of our manufacturing output, more than 50% of our merchandise exports, and generate tens of billions of dollars for our governments, used to pay for our schools, hospitals, and roads.

In other words, the importance of natural resources to the Canadian economy cannot be overstated. But don’t take our word for it. Here are several prominent Canadian business leaders and organizations who agree.

business investment in Canada is declining, natural resources are a solution

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“Resources have been a major part of Canada’s economic prosperity since its founding. Yet, many Canadians downplay these important assets, viewing resources as a “curse” or “Dutch disease.” Instead, we should count ourselves lucky to inherit such abundance.” [1]

Jack Mintz – President’s Fellow at the University of Calgary’s School of Public Policy

Philip Cross – Senior Fellow of the Macdonald-Laurier Institute

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We must play to our strengths – our people, our resources and our geography… When it comes to our resources, Canada has what the world needs – food, fuel and minerals…

But our riches are no use if we can’t share them. We need improved infrastructure corridors in addition to expanded electricity grids, access to critical mineral deposits and much more… [6]

Goldy Hyder – President & CEO, Business Council of Canada

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Canada must play to its natural resource strengths to support a strong and prosperous economy---------------------

“Without oil and gas, productivity and earnings across Canada would be lower. Instead of $59 per hour, Canada’s productivity would have been about $56. That’s a five percent drop attributable to this sector alone. That’s massive.

Put another way, without the resource sector, Canada’s economy would be nearly $150 billion per year smaller than it is—equivalent to nearly $3,700 per Canadian in lost income.” [2]

Trevor Tombe – Professor, University of Calgary’s Department of Economics, Director of Fiscal and Economic Policy at The School of Public Policy

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For many Canadians, natural resource development projects and related work offer substantial economic and social benefits. For Indigenous Canadians who live on a reserve, these are often among the few, if not the only, economic opportunities available.

The obstruction of major energy projects that First Nations are supportive of, or have invested in, has actively impeded the realization of not only the associated economic benefits and opportunities, but also further community development tied to additional project benefits. [8]

Krystle Wittevrongel – Senior Policy Analyst and Alberta Project Lead – Montreal Economic Institute

Gabriel Giguère – Public Policy Analyst – Montreal Economic Institute

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natural resource development is an obvious solution to Canada's economic woes-------------------

…since 2015, Canada has seen nearly $670 billion in natural resources projects suspended or canceled…

The evidence is rather clear that being a “hewer of wood and drawer of water” has produced positive economic outcomes for Canada. The natural resource sector—including forestry, mining, and oil and gas—is a major source of employment, investment, and economic output. It is also more productive than other parts of the economy and is the source of well-paying jobs for people and places that are less represented in other sectors. 

Yet notwithstanding the sector’s major contributions to Canada’s overall economy, it has faced headwinds over the past decade or so that have held it back…

At a time when policymakers are concerned with boosting economic growth and Canadian living standards, it stands to reason that one of the most impactful steps that they could take is unleashing the natural resource sector. [3]

Andrew Evans – Master’s Student, Columbia University and Research Assistant, Center on Global Energy Policy

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It’s hard to overstate the importance of energy to our economy. In its latest “scorecard” report, the Coalition for a Better Future notes that “over the past decade, Canada recorded a cumulative trade gap of $130-billion. Had it not been for energy, our trade gap would have been about $1-trillion.”

By any measure, the energy sector punches above its weight when paying Canada’s bills. The same is true, albeit to a lesser extent, for the other major resource sectors. [5] 

Jock Finlayson – Senior Fellow, Fraser Institute

Elmira Aliakbari – Director of Natural Resources Studies, Fraser Institute

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natural resources are a blessing that Canadians must recognize---------------------

Our country has everything required to be a global leader in physical, food and energy security. We have an incredibly rich resource inheritance. We have a diverse, educated and peaceful population. We’re located far from most conflicts and we’re next door to the world’s richest nation…

Our natural wealth presents both a tremendous economic opportunity for Canada and an obligation to help meet the world’s needs. [7]

Perrin Beatty – President & CEO, Canadian Chamber of Commerce

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Our economic numbers are not good, but the decline is not inexorable. Canada has all the tools to escape our current downward trajectory, starting with our incredible endowment of natural resources. We are blessed with world-class reserves of oil, natural gas, and uranium, and possess economic deposits of practically all critical minerals. These can further support world-class sectors in EV manufacturing, nuclear energy development, low-carbon fuels, and petrochemicals. 

Just as we entered a commodities downcycle in 2015, we are now entering a protracted bull market. Let us take advantage of it by supporting our resource and energy sector with good, common sense policy. If we do, it can provide an incredible foundation for growth, productivity, security, and prosperity for all Canadians.

Heather Exner-Pirot – Senior Fellow and Director of the Natural Resources, Energy and Environment Program, Macdonald-Laurier Institute

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natural resources are a major part of the Canadian economy, we should start supporting them as Canadians

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Canada's natural resources—oil, gas, timber, minerals, fish, freshwater, and more—have long played a vital role in developing the country's economy, identity, and culture, and they still do in areas that depend on the industry for livelihoods and community. In 2023, natural resources directly and indirectly accounted for 1.7 million jobs and 19.2% of the nominal GDP.

Deloitte

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What is Canada’s strongest feature on the global economic stage?

…We are the second-largest country on Earth, which means that we have the second-largest, or perhaps even the largest, stock of natural resources on the planet – an enormous source of strength and responsibility if we would only recognize it, capitalize on it, and make its future development and stewardship a national priority. [4]

Preston Manning – Founder, Manning Centre for Building Democracy, Former Canadian Member of Parliament

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Canada has everything required to be a natural resource powerhouse, but will we let ourselves

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It is difficult to think about where millions of Canadian and Indigenous families would be without our job-creating, wealth-generating natural resource sectors. In many cases, and especially for rural communities found throughout Canada’s vast wilderness, the forestry, mining, energy, and agriculture industries provide the only opportunities for long-term, well-paying careers that allow workers to live and work close to home.

Join us to learn more about the importance of natural resources to the Canadian economy today, and why the world needs more Canada – not less.

SOURCES:

1 - https://macdonaldlaurier.ca/canadas-resource-sector-protecting-the-golden-goose-philip-cross-jack-mintz-paper/

2 - https://thehub.ca/2024/07/11/trevor-tombe-canadas-resource-sector-is-its-productivity-powerhouse/

3 - https://thehub.ca/2024/05/13/deepdive-canadas-natural-resources-are-a-long-neglected-golden-goose/

4 - https://www.theglobeandmail.com/opinion/article-natural-resources-are-more-important-to-the-economy-than-city-dwellers/

5 - https://www.hilltimes.com/story/2024/06/05/natural-resources-remain-backbone-of-canadas-trade-and-prosperity/423834/

6 - https://thebusinesscouncil.ca/publication/an-apology-to-the-next-generation-sorry-your-living-standards-might-be-lower/

7 - https://www.policymagazine.ca/will-we-make-this-canadas-moment/

8 - https://www.iedm.org/impeding-natural-resource-development-undermines-economic-reconciliation-with-indigenous-peoples/