Which Industries Drive Canada’s Economy?

Canada’s economic strength is shaped by a diverse array of industries that significantly contribute to its Gross Domestic Product (GDP), provide widespread employment, and generate substantial export revenue. These sectors produce goods and services, impacting national prosperity. Their interconnectedness creates a dynamic environment, propelling growth and shaping the country’s global economic position.

Natural Resources and Primary Industries

Canada’s economy has a long-standing foundation in its abundant natural resources, with primary industries directly involved in extraction and initial processing forming a significant economic component.

The oil and gas sector remains a major contributor, injecting approximately $74 billion, or 3.3%, into Canada’s total GDP in 2024. This industry directly employed over 150,000 people in 2023, with the broader sector, including indirect and induced jobs, supporting around 900,000 positions. Oil drilling and gas extraction are projected to account for $141.1 billion in exports in 2025, with mineral fuels, including oil, representing a substantial portion of Canada’s total exports.

The mining industry also plays a substantial role, contributing $117 billion directly to Canada’s GDP in 2023, representing 4% of the total. When indirect contributions are included, this figure rises to $159 billion. The sector directly employs over 403,000 workers, and is a significant private sector employer of Indigenous peoples. Canada is a prominent global producer of over 60 minerals and metals, exporting these commodities to more than 100 countries.

Forestry similarly contributes to the national economy, with the sector adding $27 billion to Canada’s nominal GDP in 2023. This industry directly employed 199,345 people in 2023, with an additional nearly 496,663 indirect jobs. Forest products, including lumber, pulp, and paper, accounted for $36.2 billion in exports in 2023, making Canada the world’s second-largest exporter of wood products.

The agriculture and agri-food system collectively generated approximately $149.2 billion, or 7%, of Canada’s GDP in 2024. This expansive system provided employment for 2.3 million people, representing about 1 in 9 jobs nationwide. Canada is also a significant exporter of agricultural products, with exports totaling $100.3 billion in 2024. Major agricultural outputs include wheat, canola, and beef.

Manufacturing and Innovation

Canada’s manufacturing sector is a dynamic force, encompassing both traditional production and advanced technological innovation.

The automotive industry represents a substantial part of this sector, contributing $16.5 billion to the Canadian economy in 2024. This industry supports over 500,000 direct and indirect jobs, with 130,000 positions directly in motor vehicle and parts manufacturing. Canadian automotive exports, including vehicles and parts, reached $46.5 billion in 2024, with approximately 90% of domestic production exported, primarily to the United States.

The aerospace industry is another high-value manufacturing segment, contributing nearly $29 billion to Canada’s GDP in 2023. This sector provided employment for over 200,000 Canadians in the same year. Canadian aerospace manufacturing exported nearly $19 billion in 2023, with over 75% of its revenues derived from exports. Canada consistently ranks among the top countries globally for civil flight simulator, civil engine, and civil aircraft production.

Advanced manufacturing, integrating technologies like robotics, automation, and artificial intelligence, is increasingly shaping industrial production. This segment adds $185 billion to Canada’s GDP and is responsible for $360 billion in annual exports. The Canadian government actively supports this evolution through initiatives such as the $177 million investment in Next Generation Manufacturing Canada (NGen), aimed at fostering digital adoption within the industrial sector.

Services and Knowledge-Based Economy

The services sector is a broad and diverse component of Canada’s economy, contributing to national GDP and employment while enabling other industries.

Financial services, encompassing banking, insurance, and investment, are a particularly strong segment. This sector generates nearly $150 billion in GDP, accounting for 7.55% of the country’s total economic production.

Canadian banks alone contribute approximately $74 billion, or 3.7%, to Canada’s GDP and employ close to 300,000 individuals. The Canadian banking system has consistently been recognized for its stability and prudent regulatory oversight, with several Canadian banks ranking among the strongest globally. This stability attracts foreign direct investment and supports diverse financial activities, managing assets of about $10 trillion.

Professional, scientific, and technical services also represent a substantial portion of the knowledge-based economy. Industries such as IT consulting and engineering services employ hundreds of thousands of individuals, with IT consulting alone providing 481,459 jobs in 2025. These sectors provide specialized expertise and intellectual capital that drive innovation and efficiency across various industries. Information and communication technology (ICT) services collectively employed 717,597 Canadians.

Real estate and construction activities contribute substantial domestic economic activity and employment. Construction projects, including those supporting resource extraction, contribute significantly to job creation and local economies. The trade and transportation sector, encompassing wholesale and retail trade, logistics, and infrastructure, facilitates the movement of goods domestically and internationally. This sector is essential for distributing products from primary industries and manufacturing, with forestry, for instance, accounting for a notable portion of Canada’s rail-freight revenues.

Tourism and hospitality are also significant contributors to employment and regional economies. Sub-sectors like full-service restaurants, fast-food restaurants, and hotels employ a substantial workforce, with full-service restaurants alone accounting for 669,222 jobs in 2025. These service industries collectively generate significant economic activity and support cultural exchange.