Legal Marijuana: Just Right for the Canadian Economy?

Legal Marijuana Just Right for the Canadian Economy

It’s been a few months since the good news for all marijuana users in Canada arrived. With the government legalizing pot, the Canadian economy might be slowly surging ahead. The pot industry is estimated to be worth in billions, after all.

If you are one of the people who think that Canada is boring, then this news is about to make you move to the country. Canada joins the likes of Uruguay to legalize cannabis for recreational purposes.

On 17 October 2018, Canada decided to open the marijuana market legally. This came as a big shock to most people considering the country’s stance laws on abortion, immigration and LGBT rights. The news created a buzz, and there were reports that there were crowds who had lined at marijuana shops so that they could be the first ones to blow smoke without the fear of getting arrested.

What does the law do?

This new law allows Canadians who are above the age of 18 years to possess marijuana in public. However, you are only allowed to carry around 30 grams worth of marijuana. You can buy the pot in various forms such as dried, fresh and liquid form.

Each Canadian province has the mandate to regulate the amount of marijuana which you can carry. Therefore depending on where you are coming from then, you should be aware of your province’s cannabis laws and regulations.

How big is the Canadian Cannabis market?

If you are thinking that this is the first time that Canada is legalizing cannabis, then you are wrong. Medical use of marijuana has been legal since 2001. According to a report which was done in 2017 it is estimated that 4.7 million Canadians from the age of 15 years use the herb.

The cannabis market is already there. Once the law was passed, 132 licenses had already been given. Until today more and more people are seeking permits to get in this business.

How has the legalization of cannabis affected Canada?

Although the cannabis market in Canada is small, it has not stopped investors from flooding the market. Cannabis industries are one of the fastest growing sectors in the world. It is expected that this new cannabis law will grow the economy of Canada.

As I said earlier, there are a lot of investors who are running to take on the cannabis market in the second country to have legalized marijuana. If there are positive implications on the economy, then it is likely that other countries might follow suit.

For instance, if you take a look at Uruguay, the country legalized recreational marijuana in 2017.  According to a report by the World Bank, the state was able to make a GDP of $56.2 billion with only 3.4 million people.  On the other hand, Canada has a population of 36 million with a GDP of $1.7 trillion. If by chance Canada invests in the cannabis industry then it is bound to reap big. Canada might be the game changer in this industry.