Canada: Deloitte Study Attempts To Measure Effect Of Regulated Cannabis On Canadian Economy

A $43.5-billion boost for

Canada’s GDP

Taking into account direct, indirect, and induced economic activity, we estimate the industry has contributed $43.5 billion to Canada’s nationalGDP between legalization and 2021. Approximately $25.2 billion of this has taken the form of labour income, directly and indirectly sustaining approximately 98,000 jobs annually (on averageover the four-year period). On a cumulative basis, the direct employment sustained by the cannabis sector over the four years exceeds 43,000 FTE-years (full time equivalent).

In Ontario, we estimate the cannabis sector has contributed $13.3 billion to provincial GDP overthe same period. Labour income is responsiblefor about $8.0 billion of this, directly and indirectly sustaining approximately 31,000 jobs annually (on average over the four-year period). On a cumulative basis, the direct employment sustained by the cannabis sector over the four years exceeds 14,000 FTE-years. Nearly one in three jobs directly sustained in Canada’s cannabis sector are located in Ontario.

Another way of looking at the economic contribution is this: for every dollar of revenue and capital expenditure, the industry adds approximately $1.09 to Canada’s GDP and $1.02 to Ontario’s GDP. For every million dollars in revenue the cannabis sector sustains approximately four jobs in Canada and Ontario.