Policy Brief No. 240 — June 2026
The Macroeconomics of Canadian Space S. Mike Pavelec
Key Points → Access to space is an important driver for the Canadian national economy. → The Government of Canada has recently focused on the improvement and expansion of, as well as investment in, national sovereign space capabilities. → The expansion of the Canadian space ecosystem will produce a positive economic and intellectual feedback loop for both Canadian economics and Canadian sovereignty. → These points will stimulate an ongoing debate on the need for deterrence and defence of space access and capabilities.
Introduction: The Economic Importance of Space to Canadians In a recent episode of the Canadian Defence and Security Network’s Battle Rhythm podcast, BrigadierGeneral Chris Horner, commander of 3 Canadian Space Division, argued that losing access to space would result in the loss of $1 billion1 a day for Canadians (Saideman and Kimball 2026). Echoing comments from the Prime Minister’s Office that 20 percent of all of the Canadian economy is dependent on space access, communications and data, Horner’s bold statement should be a wake-up call for Canadians regarding the importance of space for their economy. This policy brief argues that the importance of space is even more substantial than the Canadian government, the Department of National Defence (DND) or the Canadian population fully understands. That being said, the Government of Canada — specifically the Economic
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All dollar figures are in Canadian dollars.