Many important economic changes took place in Lower Canada during this period.

The Napoleonic wars created a tremendous demand for timber to build British warships (War of 1812); however, a blockade of French ships prevented England from buying wood from the Baltic States (Estonia, Latvia, Lithuania). As a result, England turned to Canada, where a seemingly inexhaustible supply of wood was available. The fur trade went into a steep decline. In 1770, over 75% of Quebec's exports to Great Britain were furs. By 1810, furs accounted for only 9% of the exports of Upper and Lower Canada. Timber, helped by preferential British tariffs, accounted for over 70 % of the exports to Great Britain.

 

Canals were built to improve transport and trade between Upper and Lower Canada.

The Bank of Montreal, Canada's first major bank, was incorporated in 1817 and became the prime focus of early nineteenth century Canadian business and finance.

Bank Of Montreal 1817 NAC/C-114547

• Agriculture, in particularly wheat production, gradually declined in Lower Canada. After 1830, it was unable to meet foreign demand and it began to import its wheat because of poor harvests, outmoded methods and soil depletion. Overcrowded seigneuries made the situation worse.

 

The first railway built was completed in 1836 and joined La Prairie to Saint-Jean. The construction of canals allowed steamships, such as the Molson Accomodation, to sail on the St. Lawrence.