Marijuana legalization adds $34.3 billion to Canada’s GDP

The legalization in October 2018 of cannabis for recreational use in Canada has contributed to the country’s Gross Domestic Product (GDP) with around 43.5 billion Canadian dollars (about US$ 34.3 billion), according to a study by the firm Deloitte.

The study analyzes the economic and social impact of the controversial measure that made Canada in the first country in the industrialized world to legalize the recreational use of marijuana.

Deloitte points out that legalization has created some 151,000 jobs in three years, which has meant some 25.2 billion Canadian dollars (US$ 19.86 billion) for GDP.

The calculation made by the firm indicates that for every million dollars in revenues or capital expenditures, the legal cannabis sector supports four jobs. The province that has benefited the most in terms of employment has been Ontario, the most populous and the economic engine of the country, where cannabis has created 48,000 jobs.

In addition, since 2018 the North American country has received 15.1 billion Canadian dollars (US$ 11.9 billion) in taxes on the sector.

In three years, the sector has generated sales of C$11 billion ($8.7 billion) and capital expenditures of C$29 billion ($22.9 billion).

The report’s authors also noted that the cannabis sector may still “make a greater social contribution to Canada” and that you should answer “to its considerable environmental impact” generated by energy consumption, carbon emissions and waste production.

Deloitte emphasized that the sector “it does not reflect” to Canadian society and that it needs to improve its “diversity, equality and inclusion” because 72% of the executives and directors of the companies of cannabis they are white men.

The diversification of the sector is important because racial minorities in Canada “have historically been disproportionately affected by arrests for cannabis possession” even though levels of use were similar to or lower than those in white communities.