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Rural Canada Is an Economic Powerhouse that Policymakers Need to Build Upon

Rural Canada Is an Economic Powerhouse that Policymakers Need to Build Upon
Mar 30, 2026
By Farms.com

Rural Canada accounts for over 13% of the national population and contributes 27% of its GDP

Rural Canada is a far bigger driver of the national economy than many policymakers realize, and leaders say the time has come to place a rural lens at the centre of public policy decision-making.

That message was front and centre during the Coalition for a Better Future’s Scorecard Reporting Event on March 26, where Coalition co-chair Perrin Beatty and executive director Jeanne Belanger highlighted the findings of the group’s latest national assessment, Time to Execute: Canada’s Crucible Moment.

“Rural Canada is ready to prove to the rest of Canada that we're punching far above our weight,” Hon. Buckley Belanger, said at the event. “We want absolutely every aspect of our economy pumping on all cylinders.”

Applying a Rural Lens to Policy
During a moderated discussion with journalist Michael Serapio, Belanger was asked whether governments should apply a rural perspective across all public policy decisions, from infrastructure to emerging technologies.

“Absolutely. There are different folks that have different perspectives on how we apply the rural lens and we can bring various scenarios, various matrices on how to build that rural lens,” Belanger said.

The Coalition’s annual scorecard tracks 21 economic metrics and measures Canada’s progress toward long-term growth and competitiveness. For the first time, the report places a strong emphasis on rural Canada, using both national indicators and additional data to assess the health of rural regions.

Belanger told the audience that rural Canada continues to be underestimated despite its enormous contribution. “Rural Canada accounts for over 13% of the national population, and yet they contribute 27% of its GDP,” she said, noting that this imbalance is often overlooked in national policy discussions.

Rural Canada as an Economic Stabilizer
The report argues that rural communities have become critical stabilizers during a period marked by geopolitical tension and global uncertainty.

The Coalition describes rural Canadians as “the unsung heroes of our country’s success story,” highlighting their role in producing food, energy, and critical minerals that underpin national prosperity.

“In an era of global instability, rural communities act as Canada’s economic shock absorbers. We can no longer afford to let rural municipalities decline under the weight of aging roads and doctor shortages. Bridging this divide is not an act of charity; it is a strategic necessity. By applying a ‘rural lens’ to everything from trade agreements to AI policy, we ensure that the communities providing our food, energy, and minerals are not left behind.”

According to the report, rural Canada now accounts for more than 25 percent of national output, with exports reaching $383 billion in 2024. Those shipments represented 53 percent of the total value of all Canadian merchandise exports.

A Growing Divide Between Urban and Rural Canada
Despite this economic strength, the Coalition warns that infrastructure gaps and declining services threaten future growth.

“Yet, despite this massive contribution, a deepening divide in infrastructure and services threatens to stall this momentum,” the report states.

“The disparities between urban centres and rural regions represent systemic failures that threaten overall economic stability. While urban Canada thrives on service and tech, rural Canada remains the nation’s primary engine of production.”

Coalition leaders say sustained growth will not be possible if rural communities are left behind as urban centres expand.

“Rural Canada is far more than a collection of scenic landscapes; it is an industrial powerhouse accounting for more than 25% of our national output. Our collective prosperity depends heavily on exports from these regions to fuel growth,” the report says.

Building Where Entrepreneurs Live
Claudio Rojas, chief executive officer of the National Angel Capital Organization, reinforced the urgency of designing economic policy that reflects Canada’s full geography.

“We have this massive geography. We have entrepreneurs in all regions of the country and it's important that we're building companies in the communities, not driving the young people out of communities as they look to find jobs elsewhere. So we need to build where the entrepreneurs are,” Rojas said.He emphasized that regionally inclusive policy must also support advanced technologies that boost productivity across sectors.

“We need to build where the communities are,” he said. “So how we design our economic policy to be regionally inclusive... And then from there, how do we empower these enabling technologies, AI, quantum and others that cut across all industries in order to drive greater efficiencies, greater economic growth across all industries?”

Leveraging Natural Assets for Long-Term Strength
The report also points to organizations such as Shorefast, which advocate for a development model rooted in local assets rather than extract-and-export approaches.

Rather than trying to escape natural constraints, the Coalition notes rural communities can build durable prosperity by stewarding their resources wisely.
Rural Canadians should “build a future on them that is regenerative rather than purely extractive. By stewarding these assets for the long term and maintaining local ownership, rural communities can turn their comparative advantages into permanent strength,” the report says.

A National Action Plan Takes Shape
Belanger said momentum is building toward a national Rural Development Action Plan, shaped by more than 3,000 online submissions and extensive roundtable consultations across provinces and territories.

She described plans for a federal-provincial-territorial gathering to move the work forward and said the engagement process has sparked genuine enthusiasm in rural communities.

“Rural Canadians are coming out and sharing all of this, all these progressive ideas on how to build the economy, how to address some of the infrastructure,” Belanger said.

As governments look for ways to strengthen Canada’s economy in an uncertain world, the Coalition’s message is clear: rural Canada is already delivering, and future growth depends on recognizing, supporting, and investing in that reality.

Photo Credit: Canada Coaltion Time to Execute: Canada’s Crucible Moment report. 


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