Provincial and Territorial Economic Accounts Review

2014 Estimates

Overview

Real GDP increased for all provinces and territories except Newfoundland and Labrador, New Brunswick and Yukon in 2014. Northwest Territories (+5.8%) had the largest increase, followed by Alberta (+4.8%) and Nunavut (+3.3%). Nationally, real GDP rose 2.5% in 2014, compared to a 2.2% gain in 2013.

Economic growth in Alberta and Nunavut was higher than the national average for a fifth consecutive year. This was also the fifth year in a row in which real GDP in Prince Edward Island, Nova Scotia, New Brunswick and Quebec grew at a slower pace than the national average. Real GDP growth in Ontario outpaced the national average for the first time since 2005.

Chart 1 Real gross domestic product, 2014

Description for chart 1

Household final consumption expenditure increased in all provinces and territories, with Alberta (+3.9%) showing the strongest growth. Nationally, household spending increased 2.6% in 2014, slightly higher than in 2013. Sub-nationally, five of the 13 jurisdictions posted stronger growth when compared to the previous year.

Business gross fixed capital formation rose in five provinces as well as the Northwest Territories. Manitoba (+12.7%) had the strongest growth while Yukon was 14.2% lower. Overall, business investment in Canada increased 0.4% in 2014, compared to 0.7% in 2013, with eight of the 13 jurisdictions posting slower growth.

Business gross fixed capital formation in residential structures increased 2.5% nationally after declining 0.4% the previous year. Business investment in residential structures was driven by strong growth in Alberta (+8.4%) and British Columbia (+7.6%). Ontario, Yukon and the Northwest Territories were also higher.

Business gross fixed capital formation in non-residential structures, machinery and equipment was unchanged nationally after increasing 2.5% in 2013. Only Ontario, Manitoba and British Columbia showed stronger growth in 2014 than in 2013.

Exports of goods and services rose 5.3% nationally following a 2.8% gain in 2013. Growth was highest in Saskatchewan (+7.7%), Northwest Territories (+6.5%) and Alberta (+6.0%). Exports decreased in all Atlantic provinces, as well as in Yukon and Nunavut.

Imports of goods and services were up 1.8% nationally after increasing 1.5% in 2013. British Columbia (+4.7%) and Nunavut (+3.6%) had the largest increases. Imports in seven of the 13 jurisdictions, including all four Atlantic provinces, were lower in 2014.

Compensation of employees advanced in all jurisdictions, with Alberta (+7.0%) posting the largest gain. Nationally, compensation of employees rose 3.8% following a 4.2% increase in 2013. New Brunswick, Yukon and Nunavut were the only jurisdictions to post stronger growth in 2014 compared to 2013.

Gross operating surplus rose 6.2% nationally after increasing 3.1% in 2013. Eight of 13 jurisdictions posted gains, led by Alberta (+13.4%) and Northwest Territories (+9.8%). Newfoundland and Labrador (-15.2%) had the largest decline.

Household disposable income increased in all provinces and territories, led by Alberta (+6.6 %), Newfoundland and Labrador (+4.3%) and Nunavut (+4.3%). Nationally, household disposable grew 3.0%, a slower pace than the 4.8% growth from 2013.

Atlantic Canada

Newfoundland and Labrador’s real GDP contracted 2.0% after increasing 5.8% in 2013. The decrease was mostly driven by lower exports of goods and services (-4.8%), notably energy products. Household final consumption expenditure and business gross fixed capital formation both increased in 2014.

Real GDP in Prince Edward Island rose 1.5% following a 2.0% gain in 2013. Increased household final consumption expenditure (+1.6%) contributed the most to the economic growth. Business gross fixed capital formation contracted 6.0%, mainly due to a 9.1% decline in residential structures, specifically a decrease in new housing construction.

Real GDP in Nova Scotia increased 0.6% after a flat 2013. Increased household final consumption expenditure (+1.3%) was offset by declines in business gross fixed capital formation in residential structures (-10.3%) and exports (-1.8%).

In New Brunswick, real GDP decreased 0.3% following a 0.4% increase the previous year. Lower business gross fixed capital formation (-8.3%) and exports (-1.9%) restricted economic growth.

Central Canada

Quebec’s real GDP advanced 1.5% following 1.2% growth in 2013. Increased exports of goods and services (+4.5%) largely contributed to the gain. Household final consumption expenditure also increased, while business gross fixed capital formation was lower.

Real GDP in Ontario grew 2.7%, after increasing 1.3% in 2013. Growth was driven by increased household final consumption expenditure (+2.5%) and exports (+1.9%), mostly to other countries.

Western Canada

In Manitoba, real GDP rose 2.3%, after advancing 2.4% in 2013. Business gross fixed capital formation (+12.7%) as well as exports (+3.4%) and household final consumption expenditure (+2.6%) all contributed to the economic growth.

Saskatchewan’s real GDP increased 1.9% following growth of 5.8% in 2013. Growth was mostly driven by increased exports (+7.7%). Household final consumption expenditure also increased, while business gross fixed capital formation was down. Business inventories were drawn down by $1.4 billion.

Real GDP in Alberta increased 4.8% following growth of 5.1% the previous year. Increased exports (+6.0%) and household final consumption expenditure (+3.9%) largely contributed to economic growth. Business gross fixed capital formation (+0.3%) slowed in 2014, after averaging over 15% growth in the four previous years.

In British Columbia, real GDP rose 3.2%, following a 2.1% gain in 2013. Increased household final consumption expenditure (+3.5%) largely contributed to the gain. Business gross fixed capital formation (+5.4%) and exports (+2.7%) were also higher.

The territories

Yukon’s real GDP contracted 0.7% after decreasing 1.2% in 2013. Yukon was the only jurisdiction whose real GDP declined in each of the last two years. Lower business gross fixed capital formation (-14.2%) and exports (-6.2%) largely contributed to the decline in 2014. Household final consumption expenditure increased.

Northwest Territories’ real GDP rose 5.8% after advancing 3.6% in 2013. Economic growth was mostly driven by increased exports (+6.5%). Business gross fixed capital formation and household final consumption expenditure also grew.

Real GDP in Nunavut was up 3.3% following growth of 9.5% in 2013. Increased government gross fixed capital formation and business investment in non-residential structures largely contributed to economic growth. Business gross fixed capital formation in machinery and equipment and intellectual property products were down considerably.

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