It’s a known fact that ca-
nada has plenty of natural resources, but how important are they to our economy? And how big a role do they play on the world stage?

Although extraction and manufacturing of resources account for only 7% of jobs, they contributed 13% to Canada’s GDP in 2005, second only to the finance, insurance and real estate sector at 19%, according to a recent TD Bank Financial Group study. And that is just the direct contribution. TD estimates that $1 of forestry revenue generates another 65¢ in industries such as transportation and financial services. The multiplier for mining is 41¢.

Although resources sector’s share of GDP is edging slightly downward because of lower energy and forestry output, it has been fairly steady over the past 25 years.

Resources are particularly important in producing trade surpluses in goods that pay for imported food, consumer products, and machinery and equipment. In 2005, energy produced a surplus of $51 billion; forestry, $32 billion; and metals and minerals, $10 billion. (The overall surplus was $55 billion; other goods had a deficit of $38 billion.)

Resources accounted for at least a third of exports in all regions except Ontario, Prince Edward Island and Nunavut.

In 2005, resources royalties were $21 billion, about 10% of total provincial revenue. The sector’s operating profits were $48 billion, 22% of the Canadian total; capital spending was $67 billion, or 25% of total capital investment. Wages and salaries were $48 billion, or 9% of Canadian employment income.

Canada has the world’s fourth- largest resources endowment, af-ter Saudi Arabia, Venezuela and Norway. Our country is the largest producer of potash and uranium, second in timber resources and proven oil reserves, and third in natural gas production and electricity generation. We rank seventh in oil, gold and copper production, but fifth in zinc, gypsum, molybdenum, platinum and asbestos. IE