Nunavut leads Canada in GDP growth while change is slowing nationally

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While GDP grew in every province in Canada except Newfoundland and Labrador, it slowed dramatically in most jurisdictions compared to the previous year.

Across all industries, Canada’s GDP grew 1.2% in 2023, according to data released Wednesday by Statistics Canada. GDP grew by 3.9% in 2022 and by 5.3% in 2021.

Of all provinces and territories, Nunavut saw the largest increase, with GDP rising 3.4% in 2023.

“While record population growth has boosted economic activity, tight monetary policy, persistent inflation and several climate change-related events have limited manufacturing growth across Canada in 2023,” the report said.

No attention was paid to climate change-related events in the report or its associated data.

Despite Nunavut recording the largest percentage increase in GDP, Ontario remained the largest contributor to Canadian economic growth, with a growth rate of just 1.6%, accounting for almost half of the total increase in national GDP in 2023.

British Columbia also saw a 1.6% increase in GDP, making the province the second largest contributor to national economic growth, followed by Alberta, Saskatchewan and Quebec, where their province’s GDP increased 1.5% , 1.6% and 0.2% increased. respectively.

GDP fell by almost 2.5% in Newfoundland and Labrador and less than 0.1% in the Northwest Territories.

Newfoundland and Labrador had the largest negative impact on national economic output for the third time in six years.

Meanwhile, the construction sector was the most volatile sector in 2023.

Lower construction activity was the main detractor from growth in five provinces: Prince Edward Island, New Brunswick, Quebec, Ontario and Alberta.

Conversely, construction was the largest contributor to growth in Nunavut, Saskatchewan, Newfoundland and Labrador, and the Northwest Territories.

In Nunavut, the construction of a new gold mine helped engineering construction, which increased 68%, more than offsetting declines in residential and commercial construction.

Housing construction fell in every province and territory in 2023. Six jurisdictions saw double-digit declines in production. Housing construction fell 15.5% in Prince Edward Island, 19.1% in Quebec and 12.7% in British Columbia.

The Liberals have previously argued that high levels of immigration are necessary to keep the economy supported and that a key workforce is needed to help the housing sector. Despite this, 75% of Canadians believe that high levels of immigration are fueling the housing crisis.

“We need to move away from the idea that immigrants are the main cause of housing pressure and house price growth,” said Immigration Minister Marc Miller.

Canada’s largest housing markets also saw a decline in the number of real estate agents’ offices and real estate-related activity. Quebec, Ontario and British Columbia saw declines of 13.9%, 12.7% and 10.5% respectively.

“Year-over-year activity declined in all areas as potential buyers faced higher financing costs,” Statistics Canada said.

Final GDP data for 2023 is expected to be released in November. The data will contain more extensive details, including income and expenses. The future release will also provide revised estimates for 2021 and 2022.