13,3 billion dollars in Ontario since the legalization of recreational activities in October 2018
Since Canada legalized cannabis federally in October 2018, the crop has boosted the country's gross domestic product (GDP) by $43,5 billion, according to a new report. Cannabis has added $43,5 billion to Canadian economy since legalization: report
A recent study by Deloitte Canada and provincial cannabis distributor, the Ontario Cannabis Store, suggests that cannabis has boosted Canada's gross domestic product by $43,5 billion since it was legalized in October 2018, reports the Canadian press. The report claims that for every dollar of revenue or capital expenditure, the industry adds approximately $1,09 to Canada's GDP.
The study suggests that the legal cannabis industry had an impact on GDP more than ten times greater than the $3,96 billion estimated by Statistics Canada in its May report.
“In the space of three years, Canada's cannabis sector has found its footing and has become a thriving new source of economic growth, creating and supporting tens of thousands of jobs in communities across the country. As the sector grows and matures, realizing the return on its significant capital investments to date, we should expect it to have an increasingly strong and positive impact on national and provincial economies. – Deloitte Canada, Ontario Cannabis Store, “Recreational Marijuana Market Overview,” via Press
The report states that the legal cannabis industry is responsible for 151 jobs and that for every million dollars in revenue or capital expenditure, the sector supports approximately four jobs in Canada. The report also states that consumer purchases alone generated $000 billion in sales and excise taxes for state coffers.
The report highlights the staggering lack of diversity in the country's cannabis industry, finding that 72% of cannabis industry executives and directors in Canada were white men, 12% white women , while 14% were racialized men and only 2% racialized women. Of this portion of cannabis industry executives in Canada, 40% were of South Asian descent, 15% were Indigenous, 12% Arab, and 7% each for those who identify as Black and Hispanic.
"Prior to legalization in October 2018, nearly all of the 45 federally licensed cannabis producers were run by white males, some of whom already had 'grey market' cannabis experience," the report said. . "The situation hasn't changed much in the years since legalization."
Key insights from the report include:
- The Canadian cannabis sector is responsible for sustaining approximately 151000 jobs nationwide.
- Since 2018, the Canadian cannabis industry has supported approximately $15,1 billion in government tax revenue for Canada and $3,0 billion in tax revenue for Ontario.
- The industry contributed approximately $43,5 billion to Canada's national GDP and $13,3 billion to provincial GDP between legalization and 2021.
The full report is available here .