Provincial and territorial economic accounts

Economic output in the western-most provinces boomed in 2004 — particularly in British Columbia, Alberta and Saskatchewan — while growth in the eastern-most provinces was below the national average, according to new data on provincial and territorial gross domestic product (GDP).

Nationally, real GDP accelerated from 2.0% in 2003 to 2.8% in 2004. Five provinces and territories had gains above the national average: Saskatchewan, Alberta, British Columbia, Yukon and the Northwest Territories.

The only province to experience a decline was Newfoundland and Labrador. Its output edged down 0.7% following two years of stellar growth. The decline was mainly due to production problems on the Terra Nova oil platform and strikes in the public service and mining industries.

British Columbia's GDP went up 3.9%, its best performance in four years and highest among the provinces, while Alberta's economy came second, rising 3.7%. Saskatchewan's GDP advanced 3.5%, above the national average for the second year in a row, but slower than the 4.5% growth rate in 2003.

Overall, national economic growth rose against the backdrop of a healthy gain in corporate profits (+18%), with manufacturers stepping up production to meet foreign demand despite a 7.7% appreciation in the loonie against the American dollar.

Continued low interest rates aided home building across the country, and consumers furnished their new homes with appliances and electronic products, spurring a 3.9% gain in retail trade. Consumer spending grew 3.5%, compared with 3.1% in 2003, while personal disposable income rose 3.9%.

Atlantic provinces: Strongest growth in New Brunswick

New Brunswick's economy led the Atlantic provinces in 2004, rising 2.6%, just below the national average. The province's manufacturing sector bounced back last year with a 3.6% rise led by rapidly increasing shipments of primary metal products.

Operational problems at the Terra Nova offshore oilfield coupled with strikes in both the private and public sector restrained Newfoundland and Labrador, resulting in a decline of 0.7%. On the other hand, residential construction activity was especially robust in the province, rising 12% thanks to the largest number of housing starts since the early 1990s.

Prince Edward Island's economy rose 1.7%, on par with the growth registered in 2003. The main factors underlying growth were a modest increase in manufacturing, particularly the production of frozen food products such as potato products, and a booming housing market.

Nova Scotia's economy continued to expand, but at a moderate 1.3%. Home building and the manufacture of rail cars and high tech equipment coupled with strength in retail trade contributed to the growth.

Exports the engine of growth in Central Canada

In Ontario, the centre for one-half of the manufacturing activity in Canada, auto assembly operations benefited from export demand for Canadian built models.

Ontario's goods-producing industries matched the performance of the services-producing industries for the first time in two years. Three industries (transportation equipment manufacturing, wholesale trade and finance) contributed significantly to the growth of the economy. However, gains in personal consumption and business investment were below the national average.

In Quebec, investment in housing continued at a torrid pace (+15%), marking the fourth consecutive year of double-digit growth. Activity in the housing market stimulated sales of furniture, appliances and building materials. Aerospace production fell 9.2% as demand for new aircraft remained weak.

Both Ontario and Quebec consumers flocked to building material stores and new "big box" malls. Consumer spending was up 3.2% in Ontario, and 3.3% in Quebec. Overall, Ontario's economy rose 2.6% last year while Quebec's advanced 2.2%.

The West: Oil, natural resources push economic growth

Saskatchewan's and Alberta's manufacturers flourished last year, providing machinery for the booming petroleum industry, while meat processors boosted production to deal with the surplus cattle due to the closure of the American border.

Historically high oil prices spurred production and exploration in Alberta and Saskatchewan. The Alberta economy grew 3.7% thanks largely to heightened activity in the oil patch.

Overall, Saskatchewan's manufacturers had their strongest performance in a decade with an 11.5% increase that pushed total economic growth in the province to 3.5%. In addition, crop production advanced for the second consecutive year; however, wet harvest conditions affected crop quality.

Alberta and British Columbia led the provinces in terms of consumer spending, with increases of 4.7% and 4.1% respectively. Healthy labour markets in these provinces saw unemployment rates near historic lows, with Alberta's besting the country at 4.6%.

Forest products experienced their best performance in years. British Columbia profited most from this growth, with improvements of more than 15% for both forestry and sawmill production. Output in coal mining in British Columbia rose 15%, with much of the coal destined for export.

Manitoba's economy overcame a weak agriculture sector to increase 2.3%. Home building sustained the manufacture and sale of furniture and construction materials. As well, favourable weather conditions sparked electricity production and exports.

The territories: Best growth in years in Yukon

Economic output in the Yukon rose 3.7%, its best performance in three years. All sectors recorded strong growth, with business and government investment leading the charge. Output in the mining industry rose more than 70%, led by gold.

Mining operations also prospered in the Northwest Territories, where diamonds continue to have a large affect on the economy. In total, the Northwest Territories economy rose 4.2%, the best in the country, with diamond mining accounting for more than half of this growth.

Nunavut's economy rose 2.8%, rebounding from a decline of 7.6% in 2003 as business investment climbed sharply. Mine closures over the last number of years have now reduced the mining industry to about one-tenth the size it was in 2000.

Labour productivity: Half of the provinces registered gains

Nationally, labour productivity remained almost unchanged in 2004, posting the smallest year-over-year increase since 1996. Performance among the provinces was split with half of the provinces registering an increase while the other half recorded a decline. Labour productivity varied between a high of 2.9% in Prince Edward Island and a drop of 3.1% in the strike-ridden economy of Newfoundland and Labrador. Elsewhere in Atlantic Canada, increases of 0.9% and 1.4% were registered in Nova Scotia and New Brunswick respectively.

In central Canada, productivity remained just off its 2003 pace, edging down 0.2% in Ontario and 0.4% in Quebec.

With important gains in manufacturing, Manitoba and Saskatchewan experienced increases of around 1.5%, while growth in Alberta edged up (+0.5%). Despite strong growth in GDP, British Columbia saw labour productivity decline by 0.8% as hours worked jumped substantially, climbing 4.7% in 2004.

In the north, Yukon's and Nunavut's labour productivity declined while the Northwest Territories' increased 1.3%.

Detailed analysis and tables

More detailed analysis on today's releases from the national accounts, including additional charts and tables, can be found in the preliminary estimates 2004 issue of Provincial and Territorial Economic Accounts Review (13-016-XIE, free), now available online. From the Our products and services page, under Browse our Internet publications, choose Free, then National accounts.

Products, services and contact information

Provincial economic accounts

Available on CANSIM: tables 384-0001, 384-0002, 384-0004 to 384-0013 and 384-0036.

Definitions, data sources and methods: survey number 1902.

The publications Provincial Economic Accounts, Annual Estimates, 2004 (13-213-DDB, $428) and Provincial Economic Accounts, Annual Estimates: Tables and Analytical Document, 2004 (13-213-PPB, $54) are now available. The diskette can also be purchased at a lower cost seven business days after the official release date (13-213-XDB, $86). To purchase any of these products, contact the client services officer (613-951-3810; iead-info-dcrd@statcan.gc.ca), Income and Expenditure Accounts Division.

For more information, or to enquire about the concepts, methods or data quality of this release, including labour statistics, contact the information officer (613-951-3640; iead-info-dcrd@statcan.gc.ca), Income and Expenditure Accounts Division.

Provincial gross domestic product by industry

Available on CANSIM: table 379-0025.

Definitions, data sources and methods: survey number 1303.

To purchase data on provincial gross domestic product by industry at basic prices, contact the client services officer (1-800-887-IMAD; imad@statcan.gc.ca), Industry Measures and Analysis Division.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Bruce Cooke (613-951-9061; cookeb@statcan.gc.ca), Industry Measures and Analysis Division.

Labour statistics accounts

Available on CANSIM: tables 383-0009 to 383-0010.

Definitions, data sources and methods: survey number 1402.

For more information, or to enquire about the concepts, methods or data quality, contact Jean-Pierre Maynard (613-951-3654; fax: 613-951-3292; productivity@statcan.gc.ca), Microeconomic Analysis Divisions.