Wildfires Scorch Canada's Economy

Canada's recent wildfire seasons have been some of its most severe on record. The country has experienced several large-scale wildfires in recent years, including the 2023 season which burned a record 17.6 million hectares and the 2025 season which was the second-largest at 8.4 million hectares.

The 2026 wildfire season is continuing this trend, with over 4,700 fires burning more than 4.1 million hectares across the country by mid-August. The Northwest Territories, Quebec, Ontario, and British Columbia are among the regions most affected, accounting for over 80% of the area burned.

The economic impact of wildfires is significant, not only in terms of property damage but also in their disruption to livelihoods, public health, production, and critical infrastructure. The forestry sector is particularly vulnerable, as wildfires can reduce timber supply, disrupt processing operations, and contribute to price volatility.