The political turbulence that has taken over the beginning of 2025 has illuminated some shortcomings in Canadian policies, including our trade overreliance on the United States. But this uncertainty is also presenting opportunities to adapt and innovate in new ways that can foster prosperity.
Economic prosperity is important to engaged women, who represent 42 per cent (6.7 million) of women across the country. On a national scale, it can be measured through several contributing factors. These include gross domestic product (GDP) — the total output created through the production of goods and services in a country during a certain period — and productivity — business sector labour productivity as measured by real GDP per hour worked.
In Canada, both measures are suffering, and have been for a while.
A September 2024 report from the Canadian Chamber of Commerce puts it plainly: “Canada is in a productivity emergency with declining living standards.”
According to the report, titled Canada’s Natural Wealth, “Productivity is closely linked to a country’s prosperity and long-term standard of living. Rising productivity improves wages, lowers prices and increases tax revenue to support public services.”
Among G7 countries — the intergovernmental and economic grouping of the world’s seven most advanced economies — Canada ranks second to last in productivity.
This is despite Canada’s remarkable wealth of natural resources and highly skilled workforce. So, how can we bridge the gap and get serious about achieving our prosperity potential?
Barriers to innovation, productivity and prosperity in Canada
The Council of Canadian Innovators (CCI) is a member-based organization focused on reshaping how governments across Canada think about innovation policy. The organization works to optimize the growth of Canada’s innovation-based sector by ensuring Canadian tech and public policy are working together to improve outputs. CCI works on behalf of members from the cleantech, fintech and e-commerce, cybersecurity, health and biosciences and digital industries to support innovative growth in every corner of the Canadian economy.
“At CCI, we believe that for Canada to remain competitive in the global innovation economy, our policy and decision-makers must prioritize policies that enable high-growth Canadian companies to scale and succeed, both domestically and internationally,” says Dana O’Born, vice-president of Strategy and Advocacy at CCI.
“Given the current political landscape — both in Canada and globally — this work is more important than ever. As we navigate the trade hostilities, our focus is on building a strong domestic economy to support Canadian sovereignty.”
Dana O’Born, vice-president of Strategy and Advocacy at the Council of Canadian Innovators.
Canada is at a crossroads. Not only are we facing down tariff threats from our largest trading partner, but we’re also limiting the potential of one of our most productive industries through established policies such as the carbon tax and pending policies such as the emissions cap.
Canada’s natural resource sector accounted for $213 billion in Canadian GDP in 2023, with oil and gas extraction leading the pack at $71 billion. Modelling by the Conference Board of Canada predicts the emissions cap, if implemented, will lead to a 0.9 per cent to 1.6 per cent decline in GDP in 2030. That amounts to a $22.8 billion to $40.4 billion reduction in national GDP — which translates to fewer jobs, lower household income and a decline in quality of life.
“Canada’s energy sector is not just a foundational pillar of our economy — it’s also a key driver of innovation and global competitiveness,” says O’Born. “At CCI, we recognize that clean energy and natural resource development are critical to ensuring sustainable economic growth while also positioning Canada as a leader in the global abundance race and reaffirming our industrial strengths as a nation.”
With affordability and prosperity already on unstable ground in Canada, now is the time to innovate, accelerate and achieve economic growth.
Turning uncertainty into opportunity
The current geopolitical climate presents Canada with an opportunity to harness its potential and take charge of its own prosperity through trade diversification — both domestically and internationally — technology and innovation, infrastructure development and a balanced approach to energy policies.
“The intersection of technology and energy policy is where we see enormous potential,” says O’Born. “One of the most significant opportunities for Canada lies in leveraging its natural resources — particularly in critical minerals, renewable energy and clean tech — to drive innovation and attract investment that helps Canada grow and maintain its global position in the resource sector.”
Investing in Canadian products and the infrastructure to own the transport from coast to coast, such as Energy East and Northern Gateway, has seen a recent increase in public support, according to the Angus Reid Institute. National support for Energy East, a project terminated in 2017 that would have carried oil from the west to Quebec and New Brunswick, has risen to 65 per cent. The Northern Gateway, which would have carried oil from Alberta to the North Coast of B.C. and was cancelled in 2016, now shows support from 54 per cent of respondents.
Breaking down interprovincial trade barriers is also being examined by premiers and federal officials as a way to lower prices and boost GDP and productivity in Canada.
“Regardless of whether these tariffs are ultimately implemented, Canada must prioritize strengthening its domestic economy by improving the flow of goods, services and talent within its own borders,” says O’Born.
Altogether, Canada’s path forward is filled with potential — not only to overcome the challenges we are currently facing, but to leverage our strengths and become a stronger, more prosperous nation for the long term.