By Adam Legge<\/p>\n
Canada\u2019s economy<\/a> isn\u2019t just struggling; it\u2019s limping. Yet now, after a decade of drift and lost focus, it\u2019s time to face the truth: we need to move quickly to protect the well-being of Canadians and the only fast and meaningful path to achieving that runs straight through our natural resource sector.<\/p>\n Zeroing in on some facts, July\u2019s economic numbers showed a slight uptick, largely thanks to mining and oil and gas, but the bigger picture is grim: the economy shrank 0.4 per cent in the second quarter compared to the first quarter, and 1.6 per cent compared to the same quarter last year.<\/p>\n Canada\u2019s real investment in industrial machinery and equipment fell in the second quarter to the lowest level on record, according to a recent National Bank report. This lack of investment is acute in the country\u2019s manufacturing sector, particularly in Ontario<\/a>, where manufacturing capital stock is at the same level as 1974.<\/p>\n Meanwhile, United States President Donald Trump<\/a> has forced Canada to confront a hard truth: we have taken the U.S. market for granted, neglected to diversify our other export markets and underinvested in everything from defence to trade infrastructure.<\/p>\n Trump\u2019s tariffs<\/a> are hitting key industries, such as autos, steel and aluminum, which are sectors vital to Canada\u2019s trade and manufacturing base, but also ones that look to be in deep long-term trouble. Canada\u2019s softwood lumber sector is the poster child of ongoing trade disputes with the U.S.<\/p>\n It\u2019s obvious Canada\u2019s trade and economic challenges are piling up. Our support for U.S. tariffs on Chinese electric vehicles has triggered retaliatory tariffs from China on Canadian canola, seafood, and pork.<\/p>\n Residential construction \u2014 a key driver of economic growth from Vancouver to Toronto \u2014 has hit a wall due to affordability pressures and weak consumer confidence<\/a>.<\/p>\n Retail, Canada\u2019s largest employment sector, is also struggling, and about 80 per cent of Canadians plan to spend less this season, with total spending expected to drop 10 per cent from 2024, according to PricewaterhouseCoopers Canada\u2019s Holiday Shopping Survey<\/a>.<\/p>\n Taken together, it should come as no surprise that Canada\u2019s economy is in trouble.<\/p>\n But even given these significant headwinds, Canada\u2019s natural resource sector \u2014 particularly oil and gas and mining \u2014 holds the power to turn things around.<\/p>\n Natural resource-related industries (including oil and gas, mining, agriculture, forestry and fishing) account for 17 per cent of gross domestic product (GDP), 70 per cent of goods exports and 30 per cent of capital investment, and they offer some of the highest-paying jobs in the country. Plus, the impact of our natural resource industries ripples through the broader economy, sustaining jobs in small businesses, retail and housing markets.<\/p>\n Consider that when the Trans Mountain Expansion Project began shipping oil out of British Columbia, the Bank of Canada<\/a> estimated it would lift Canada\u2019s GDP by 0.25 per cent \u2014 a substantial boost from a single project. The expansion is also projected to deliver $1.25 billion<\/a> in dividends to the federal government in 2025, with Alberta Central estimating<\/a> an additional $2 billion in federal tax revenue this year from the project.<\/p>\n