Canadian Cannabis Has Added $43.5 Billion to Canada's GDP Since Legalization
Legalizing cannabis seemed like a risky bet for Trudeau over 3 years ago. However as we pass year 3 of legalization the industry seems to be in robust health! Consumption is widely accepted across the country and the sky has certainly not fallen as the reefer madness campaigners had wanted you to believe. In addition, Cannabis has contributed $43.5 B to Canada's GDP since legalization on October 17th, 2018 according to Deloitte.
Highlights from the Deloitte report:
Legal recreational cannabis sales have grown from $1.6B in 2018 to $3.9B in 2021. This is an increase of 143% and totals to over $11B in that time. It is also estimated an additional $29B was generated through capital expenditures in no small part to the large construction projects needed to develop the facilities to both grow and distribute cannabis across Canada.
Moreover, the industry has generated over 151,000 jobs and put over $15B into government coffers. Another way of looking at the economic contribution is that for every $1.00 of revenue or capital expenditure the industry adds $1.09 to Canada's GDP which shows a positive return which all successful industries need to have.
The $15B in tax revenue generated can be broken down into:
Direct taxes- $1B
Indirect taxes- $7.3B
Induced taxes- $3.9B
Sales & Excise tax- $2.9B
To think we're only 3 years into this new industry is pretty exciting. Across the board the step towards legalizing cannabis has made an overwhelmingly positive impact on the Canadian economy. proving to be a thriving source of "green" economic growth.
Not only generating Billions to line to government coffers but directly created hundreds of thousands of jobs that otherwise would have gone to "illicit" groups. This is absolutely massive to redirect these funds to legal entrepreneurs and others looking to capitalize on the "green rush" and help have a positive impact on the people it serves.