Northern Canada encapsulates 40% of the landmass of Canada. As a result, the northern part of Canada has significant influences on the world’s ninth-largest economy, Canada. According to the World Bank data, the GDP of Canada is worth USD 1.64 trillion.
The economy of this country largely depends on the export and import of goods and services that the major industries of Canada produce. The northern part of the country is rich in mines, oil, gas, forestry, and most importantly, very educated minds. Canada trades with the three big trading countries: the UK, the US, and China.
The industries of North Canada are irresponsible for the growth of Canada to such a large economy that it is today. The Canadian government has been trying to develop north Canada with the Northern Strategy introduced in 2007.
Norstrat believes in the Northern strategy of Canada and aims to develop and protect Northern Canada.
Main Industries Of North Canada
The major industries of Canada are real estate, mining, oil, and gas extraction. The massive labor force and adept natural resource deposits are two reasons Canada’s economy has grown as large as it has grown. Here, we have discussed the leading industries of North Canada.
Oil & Gas Extraction
The oil & gas extraction industry is sizable in northern Canada, which is also for good reasons. In terms of oil reserves, Canada ranks twelfth in the world. Canada also ranks 19th in terms of its natural gas reserves. But in terms of natural gas production, Canada ranks third in the world.
As North Canada consists of 40% of its land, it is a treasure trove of natural resources, especially natural oil and gas. The Arctic region of Canada contains 44 billion barrels of crude oil and 770 cubic feet of natural gas.
Although the northern region has a harsh climate, lack of good infrastructure and workforce, the government is trying to develop the worksites there for environment-friendly extraction.
Mining
North Canada is rich in valuable minable objects, both metal, and nonmetal. The mining industry is yet another large industry of Canada that is still growing as the country’s northern side has yet to contribute more. However, the mining industry in northern Canada is growing.
The region has a very harsh environment, lack of infrastructure, transportation disadvantages, and its remoteness of the location creates an adverse effect on the growth of the industry. But the bright side is, it has immense natural resource deposits and political support, which gives the industry a better future to look ahead to.
Mining activities have already made many of the metal and nonmetal objects come out. Some include coal, gold, copper, silver, nickel, stone, gravel, etc. Moreover, the industry’s GDP is growing faster; according to the Government of Canada, by the end of 2021, it will have a 15% growth.
Forestry
Canada has huge forest resources. More than 39% of the Canadian land consists of forests.
The first industry here is very profitable, and it has a major contribution to the country’s economy. Spruce, pine, and polar are the trees largely available in the land.
The forestry activities include manufacturing solid wood, logging, pulp, and paper. The country is famous for its huge export of wooden objects.
Although deforestation is a negative side of forestry, Canada has a science-based approach towards forest management that sustains the forests while continuing the industry.
Fisheries
Fisheries in North Canada is a very healthy industry to have faced significant growth. Both in saltwater and freshwater, the fishery industry has been a very proficient one in North Canada. The industry employs around 72000 people in Canada, and the contribution of this industry to the Canadian economy is undeniable.
Real Estate & Rental
Real estate, renting, and leasing plays a large part in the country’s GDP. The Real estate business comprises businesses such as; real estate buying and selling, renting and real estate management, leasing tangible assets like automotive equipment, and leasing some nonfinancial intangible assets.
The industry employs around 250000 workers, and the GDP growth until June of 2021 was 3.7%according to the country’s government.
Bottom Line
The geographic aspect of North Canada is challenging for any industrial growth. The lack of abundant inhabitants, infrastructure, and transportation are some reasons that prohibit the people of the North from properly developing any industry there.
But the natural resources, political support, and the will of the government of Canada offer a better tomorrow for the north Canadian industry to rise beyond its current state.
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