The Economy in Lower Canada and Upper Canada

From 1791 to 1840, Lower Canada and Upper Canada underwent various transformations. Demographic changes and the British-American War of 1812 affected the economies in Lower Canada and Upper Canada. It became necessary to construct more efficient transportation infrastructure and create banks in order to support the colony’s economic development and meet the needs of a growing population.

Agriculture in Upper Canada flourished whereas Lower Canada experienced a major agricultural crisis in the 1830s.

Although the fur trade was in decline, the timber trade was booming, so much so that timber became the colony’s main export.