1) Natural Resources
Canada has the highest reliance on natural resources for its GDP among G7.
In 2024, Natural Resources Sectors contributed to nominal GDP is 16%.
Exact wording from World Bank: Natural resources give rise to economic rents because they are not produced.
Exact wording from World Bank: When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future.
Imagine your grandparents left you five properties. You did nothing much else but sell one every two years to fund your lifestyle. Can you honestly call yourself productive and capable?
2) Migration Policy
Canada has the highest net migration rate among G7 relative to population size.
Canada has the highest cumulative net migration rate among G7 relative to population size.
Cumulative net migration in 2024: 8.36% of total population.
Imagine a restaurant offers an employment contract if a customer buy a coke from there. And the restaurant gets 8.36% more customers without having to improve its competitiveness, i.e. food product quality, incentive scheme for staffs, interior infrastructure, cost control, or management efficiency etc.
Revenue obviously goes up, even though the business itself hasn't changed.
Should we consider this revenue growth a successful achievement and the strategy is remarkable?
How will the company become? What has the company become?
3) International Students "Education" Industry
Since 2015, the number of international students in Canada has more than doubled, eventually peaking at 5.43 times the original 2015 total by 2023.
Tuition fee (generally triple of local's fee), profit of the institutions and businesses, employment and consumption led by the "education" industry, taxes involved for government spending and cascaded multiplier effects.
Education has transformed into a hybrid of tourism, education industry, also implicitly functioning as a migration pathway that fuels local consumption.
Imagine the implied bait behind the official deal were removed through administrative measures, and the offerer revoked the terms, what can you see from the series of actions?
Impact on consumption and tax revenue? Integrity, capability, and vision of the management?
Extension: Historically low-interest-rate environment from 2015 to 2022
According to Bank of Canada, the long-term Government of Canada benchmark bond yields from 2015 to 2022 experienced the lowest era.
Profit of corporation and consumption driven by the wealth effect from appreciation of assets, mostly properties.
Expanding commercial/ economic activities is driven by the financial environment. What if there is a supply-pushed high inflation, high unemployment, assets price drop, and low/ no growth or even recession?
Did the company start preparing itself 2 years ago?
This is how those figures being stacked.
This is also some figures not being presented.
Fight
