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Monday, April 28, 2008
Real gross domestic product (GDP) increased 2.7% nationally in 2007, matching the average rate of growth during the last five years. GDP growth in five provinces and all three territories, mostly on the strength of natural resources, surpassed the national average, with Newfoundland and Labrador well ahead of all the other provinces.
GDP in Newfoundland and Labrador surged 9.1% in 2007, nearly three times the rate of growth in 2006. The Saskatchewan economy increased 2.8%, rebounding from a drop in 2006. In oil-rich Alberta, the economy moved ahead 3.3%, about half the 2006 growth rate. Manitoba and British Columbia, the remaining two provinces with above average growth, were boosted by consumer spending, with their economies rising 3.3% and 3.1% respectively.
Note to readers
Percentage changes for expenditure-based and industry-based statistics (such as consumer expenditures, investment, exports, imports, production and output) are calculated using volume measures, that is, adjusted for price variations. Percentage changes for income-based statistics (such as personal income, labour income and corporate profits) are calculated using nominal values, that is, not adjusted for price variations.
More detailed analysis on today's releases, including additional charts and tables, can be found in the 2007 preliminary estimates issue of Provincial and Territorial Economic Accounts Review (13-016-XWE, free).
Preliminary estimates of provincial and territorial economic accounts for 2007 are included with this release. No revisions have been made to data for previous years. Revised estimates for 2004 to 2007 will be published in the fall.
Diamonds spurred economic growth in the Northwest Territories and Nunavut, while copper production boosted Yukon's economy.
The year was marked by higher commodity prices and a further large appreciation of the Canadian dollar against its US counterpart.
Mining activity flourished, but goods production generally lagged behind services. Personal income and consumer spending remained strong as final domestic demand increased 4.3%. Imports increased a significant 5.7% while foreign demand for manufactured goods softened.
The economy surged 9.1% in Newfoundland and Labrador, far outstripping the other provincial economies. This was well ahead of its 3.3% gain in 2006. Increased oil and mineral extraction, combined with strong world commodity prices, became the catalyst for growth in 2007, more than three-quarters of which could be attributed to mining activities.
Oil extraction in the province leapt ahead, thanks to a virtually trouble-free year on its many oil platforms. The second full year of production at the Voisey's Bay nickel mine was also a big contributor.
Alberta's economy advanced 3.3%, following a 6.6% increase in 2006. Oil and gas extraction increased, but exploration activity was curtailed for the second consecutive year. Residential and non-residential investment continued to expand in response to Alberta's ever-growing population. Canadians flocked to the province with the lowest unemployment rate in the country.
In Saskatchewan, GDP grew by 2.8%, following a 0.4% decline in 2006. Potash mining bounced back on the strength of increased demand from China, while grain production fell slightly. Corporate profits got a boost from high world prices for grains, potash and uranium.
The Canadian dollar has appreciated considerably relative to its US counterpart since 2002. The impact of the higher dollar has been most keenly felt in export-oriented manufacturing industries, where jobs have been lost. In both Ontario and Quebec, steady service production contributed to growth in 2007.
Quebec's economic activity accelerated to 2.4% from 1.7% in 2006. Labour income rose 5.8% as many Quebec government employees received a hefty pay equity settlement. Personal spending was up 4.6%, mostly on durables. Business investment, including home building, rose 6.5%, lifting the fortunes of lending institutions and financial services. High commodity prices boosted mining activity, offsetting the weakness in forestry and wood products industries.
GDP in Quebec's manufacturing sector rose 0.8%, thanks in part to strong production of aerospace products and machinery and equipment. Quebec's overall job picture improved as the unemployment rate fell to 7.2%.
In Ontario, the economy expanded by 2.1%, matching its increase in 2006. Growth in Ontario, like Quebec, has lagged the Canadian average every year since 2003. Output in the services producing industries increased, while goods production fell. Manufacturers curtailed output for the third consecutive year, partly because of weaker US demand for automotive and wood products. In all, production dropped in 16 of 21 manufacturing major industry groups.
Despite the weakness in manufacturing, Ontario's job picture held steady. The unemployment rate increased only slightly to 6.4%. The steady labour income picture contributed to growth in personal spending, particularly on durable goods. Construction activity expanded with engineering projects and a small increase in residential construction offsetting a decline in non-residential building construction.
Manitoba's GDP grew 3.3%, after posting a 3.2% increase in 2006. Labour income growth of 7.4% had a positive impact on home building and retail trade. Construction investment advanced at a feverish pace, with work ongoing at several large projects around the province. A recovery in manufacturing, particularly of primary metals and transportation equipment, resulted in goods production outpacing services production again in 2007.
British Columbia's economy rose 3.1% in 2007, a slight slowdown from growth of 3.3% in 2006. Labour income advanced 6.2%, with personal expenditures, particularly on durable goods, following suit. Construction activity continued to advance, with home building contributing. Corporate profits fell for the first time since 2002 as American markets for lumber and wood products weakened significantly.
Nova Scotia's GDP increased 1.6% in 2007, up from 0.9% in 2006. An increase in gas production at Sable Island during 2007 and a rebound in forestry and paper products, due to a mill reopening, contributed to growth in exports. Retailers in the province benefited from housing construction and continued growth in labour income.
Economic activity in Prince Edward Island slowed to 2.0% in 2007 from 2.6% in 2006. Manufacturing rebounded from a 2006 decrease, largely thanks to food production for export. Home building picked up after two years of decline. Labour income's strength contributed to growth in personal expenditures, particularly of durables.
In New Brunswick, GDP grew by 1.6% in 2007, a slowdown from the 3.0% growth of 2006. Exports of forestry and related manufactured products tumbled. The construction of several large projects in the province more than offset weakness centred in the manufacturing sector. Retailers, particularly of big ticket items, benefited from an improved employment picture and accelerating labour income growth.
Diamond production jumped in the Northwest Territories as the economy surged 13.1%, much faster than the 2.9% gain in 2006. Construction activity continued unabated at the Snap Lake mine site. Three of Canada's four diamond mines are located in the Northwest Territories.
Nunavut's economy expanded by a record 13.0% in 2007, up from 3.4% in 2006. Construction work at the Meadowbank gold mine, as well as mineral exploration throughout the territory, benefited from world demand for natural resources. Canada's fourth diamond mine is located in Nunavut. Diamond production was up over 2006.
Yukon's economy expanded by 3.8% in 2007, up from 2.9% in 2006. A new mine opened, allowing the territory to benefit from high copper and gold prices. Construction work continued on several infrastructure projects. Yukon also hosted the Canada Winter Games in February and March of 2007.
|Real gross domestic product at market prices, chained (2002) dollars|
|Newfoundland and Labrador||1.6||15.6||5.8||-1.7||0.2||3.3||9.1|
|Prince Edward Island||-1.1||4.8||2.1||3.0||1.3||2.6||2.0|
All of Statistics Canada's information and data on the System of National Economic Accounts are available through the National Economic Accounts web module, accessible from our website.
More detailed analysis on today's release, including additional charts and tables, can be found in the 2007 preliminary estimates issue of Provincial and Territorial Economic Accounts Review, Vol. 4, no. 1 (13-016-XWE, free), now available online. From the Publication module, choose Free Internet publications, then Economic accounts.
With this release, preliminary estimates have been made for 2007 without revisions to previous years. The provincial and territorial economic accounts includes estimates of the income and the expenditure-based GDP, real GDP, contributions to percent change in real GDP, implicit price indexes, sources and disposition of personal income and government detail tables.
The government detail tables have not been updated with this release; their 2006 estimates will be included in the fall release. Summaries by sub-sector of government (federal, provincial, local, Canada Pension Plan and Quebec Pension Plan) are provided in tables 6 to 10. Revenue details are presented in tables 11 to 13. Table 11 disaggregates direct taxes, social insurance contributions and transfers paid by persons to government. Table 12 presents the components of taxes on production and products, while Table 13 lists the sources of government investment income. On the expenditure side, the major transfers to persons are presented in Table 14 while subsidies and capital transfers, to both the personal and business sectors, can be found in Table 15. Finally, Table 16 lists the most important current transfers between levels of governments.
Provincial Economic Accounts, Tables and Analytical Document, 2007 preliminary estimates (13-213-PPB, $54) is now available. To purchase this product, contact the client services officer (613-951-3810; firstname.lastname@example.org), Income and Expenditure Accounts Division.
The publication Provincial and Territorial Economic Accounts: Data Tables (13-018-XWE, free) is also available. From the Publication module, choose Free Internet publications, then Economic accounts.
For more information, or to enquire about the concepts, methods or data quality of this release, contact the information officer (613-951-3640; email@example.com), Income and Expenditure Accounts Division.
To purchase data on provincial gross domestic product by industry at basic prices, contact Client Services (toll-free 1-800-887-IMAD; firstname.lastname@example.org), Industry Accounts Division.
For more information, or to enquire about the concepts, methods or data quality of this release, contact Bruce Cooke (613-951-9061; email@example.com), Industry Accounts Division.