Canada’s cannabis industry contributed $8.26 billion to country’s GDP as of July

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Canada’s cannabis industry contributed $8.26 billion to country’s GDP as of July

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This month, Statistics Canada released information detailing the economic influence that legalization has had on Canada’s economy. By July 2019, a whopping $8.26 billion was contributed to the country’s gross domestic product (GDP) from legal cannabis sales.

This is a noticeable increase from the $7.2 billion that cannabis sales added to the country’s GDP in October 2018; the same month that the Cannabis Act (Bill C-45) went into effect.

According to the StatsCan report, Canada’s cannabis industry has inflated at a rate of 185 percent within its initial 10 months of launching. As a direct effect of legalization, the illicit market has shrunk 21 percent during the same timeframe.

Canada’s legal cannabis industry grows, other industries are declining

There has already been talk about various facets of Canada’s legal cannabis industry, including the level of cannabis cultivation and sales figures. However, no other report has spotlighted the economic effects that the Cannabis Act has had on the North American country. 

A number of measurements focused on in the StatsCan report indicate that, in spite of a rollercoaster ride of events occurring, Canada has done well to take on the immense task of rolling out cannabis reform. While some cynics feel that the passing of Bill-C45 was not worth the effort, data says something different.

The National Cannabis Survey, published in May, stated that approximately 5.3 million or 18 percent of Canadians aged 15 years and older reported using cannabis in the last three months. This just proves the potential of Canada’s cannabis consumer demographic and how it translates to sales/economic growth.

While the legal cannabis sector continues to flourish, various other industries in Canada appear to be stumbling. Ganjapreneur recently reported that the oil, gas, extraction, quarrying and mining industries have shrunk three percent. Meanwhile, construction is down 0.7 percent and manufacturing is down 0.1 percent.

Projected figures for Canada’s cannabis industry likely to grow with time

There is plenty of room for growth in Canada’s legal cannabis industry, with just 24 pot stores having opened their doors so far. With cultivators now yielding enough weed to meet annual demand from Canadian cannabis consumers, the industry seems to have overcome its preliminary hurdles.

As a nascent industry that is expected to continue growing throughout the remainder of 2019, there is a good chance that next year’s GDP from Canadian cannabis will surpass this year’s.

What’s more, Statistics Canada reported how Canada’s legal cannabis industry added a total of 6,570 jobs during the month of August, representing a four-fold increase from 2018. More jobs means better unemployment rates and more money being pumped into the country’s economy a win-win for everyone.