Marijuana legalization will boost economy by $8 billion

Cannabis in Canada is legal for both recreational and medicinal purposes. On June 19, 2018, the Senate passed the bill and the Prime Minister announced the effective legalization date as October 17, 2018. Canada is the second nation (after Uruguay) to legalise the drug.

SOURCE: Cannabis in Canada. From Wikipedia, the free encyclopedia.

Canada’s measure of real gross domestic product will get a boost after the legalization of marijuana adds as much as $8 billion to the country’s economy, according to Toronto-Dominion Bank.
Statistics Canada will begin including “licensed and unlicensed cannabis activity” in its economic calculations after the Oct. 17 roll out, which will have an impact on measured growth rates in the final quarter of 2018 and first quarter 2019, TD says. The bank cautions that the increase to growth is actually an accounting illusion, because some of the cannabis-related trade already existed in the economy but wasn’t formally captured in most measures of output.

SOURCE: CP Marijuana will add $8 billion to Canada’s economy — at least on paper, TD says. Chris Fournier. Bloomberg News. September 19, 2018 10:57 AM EDT.

The “green rush” is expected to grow into a US$5 billion industry, but legalization also forces down the market value of pot. In fact, marijuana stocks plunged on the first day of legal sales. Few physical stores are open so far, with most of the market based on mail order.

Legalized marijuana will certainly contribute to Canada’s economy, but just how much remains to be seen. “There are all kinds of speculations and estimates,” Armstrong said. “Really, it is a grand experiment, and we are all going to find out.”

SOURCE: Will Legalizing Marijuana Light Up Canada’s Economy? Oct 24, 2018.