Canada's GDP rose 3.3% in 2010, following 2.6% decline year-over-year in 2009, led by construction, mining, oil and gas extraction, manufacturing

Michelle Rivera

Michelle Rivera

Apr 28, 2011 – Statistics Canada

OTTAWA, Ontario , April 28, 2011 (press release) – Real gross domestic product (GDP) advanced in every province and territory in 2010, rebounding from 2009 when output declined in all jurisdictions except Manitoba and Yukon. Nationally, real GDP rose 3.3% in 2010, following a 2.6% decline in 2009.

Among the provinces, growth rates surpassed the national average in Newfoundland and Labrador, Alberta and British Columbia while Ontario matched the national rate. GDP increased by 8.9% in Nunavut, the fastest pace of any region.

In most provinces, construction, mining and oil and gas extraction as well as manufacturing, spurred goods production to outpace growth in services.

Atlantic provinces

In Newfoundland and Labrador, GDP advanced 4.8% in 2010, the fastest pace among the provinces. This followed a 10.4% decline in 2009. The increase in 2010 was led by a rebound in metal ore mining following a strike which began in 2009. Increased output of oil and gas extraction and other engineering construction also contributed to the advance.

Output in construction rose by 19% in 2010, as work began on a new mineral ore processing plant and residential construction increased by 14%. Increased goods in circulation contributed to advances in wholesale trade and transportation services.

In Prince Edward Island, GDP increased by 1.8% in 2010 after falling by 0.2% in 2009. Residential construction and retail trade picked up. Crop and animal production increased after a drop in 2009. Additional capacity resulted in higher output by utilities. Manufacturing production retreated 7.3% as output of food, transportation equipment and chemical products declined.

In Nova Scotia, GDP increased by 2.3% in 2010 following a 0.3% decline in 2009. Manufacturing led the way with a 7.6% gain, following a 6.6% contraction in 2009. Output also increased in residential construction, wholesale trade and transportation services. Mining and oil and gas extraction decreased.

Manufacturers of rubber and forest products increased output. Transportation equipment manufacturers increased output with work on Coast Guard vessels and naval frigates.

In New Brunswick, GDP rose 2.7% following a 0.5% decline in 2009. Growth occurred mainly in manufacturing, forestry, fishing and mining. Wholesale trade and transportation services increased together with goods production.

Manufacturing output increased, led by seafood and forest products. Construction output fell in 2010 as several engineering projects neared completion.
Central Canada

In Quebec, output rose 2.5% in 2010 following a 0.5% contraction in 2009. Residential construction, manufacturing, and to a lesser extent, support activities for mining and oil and gas extraction, and logging and forestry, contributed most to the overall advance. In services, notable gains occurred in wholesale trade, truck and rail transportation and financial services.

Increases were reported by manufacturers of wood and rubber products, chemicals (including pharmaceuticals) and primary metal products.

In Ontario, GDP increased 3.3% in 2010 following declines in 2009 (-3.5%) and in 2008 (-0.7%). In the goods-producing sector, output rose 8.4% and contributed more to growth than services. Higher manufacturing output and increased construction, notably of residential structures, contributed to this growth.

Wholesale trade and transportation services advanced in tandem with goods production.

Overall, manufacturing output increased by 10% following two years of significant declines. Production rose in 20 of 21 major manufacturing industries in Ontario, led by a 41% rise in motor vehicle production. Gains were also reported by manufacturers of rubber and plastic products, and primary and fabricated metals.
Western provinces

In Manitoba, GDP grew 1.4% in 2010 after showing no growth in 2009. Construction, wholesale and retail trade, and transportation services contributed to the advance. Crop production fell sharply as a result of bad weather.

Output in construction advanced as work continued on major engineering projects. Residential building construction increased 15%. Oil and gas extraction rose as did support activities for mining and oil and gas extraction (mainly exploration activities).

Manufacturing activity fell as increases in primary metals and transportation equipment were more than offset by declines in output of frozen food products, chemicals and agricultural equipment.

In Saskatchewan, GDP increased by 1.4% in 2010 after falling by 4.2% in 2009. A rebound in mining (which includes potash) led the recovery. Gains in support activities for mining and oil and gas extraction and other engineering construction also added to the advance. However, bad weather affected crop output and at the same time, manufacturers of agricultural equipment reduced production.

Overall manufacturing output rose with gains in primary metals, chemicals and wood products. Services production expanded with increases reported in financial, health care and accommodation and food services.

In Alberta, GDP increased by 4.0% in 2010 after contracting by 4.8% in 2009. Strengthening energy prices led to increases in support activities for mining and oil and gas extraction. Manufacturing and crop production also advanced.

Crop production increased significantly as Alberta experienced more favourable weather than its Prairie neighbours. Gains in residential and electric power engineering construction were partly offset by declines in non-residential construction and oil and gas engineering construction. Oil and gas extraction increased by 0.7%.

In British Columbia, output rose by 3.8% in 2010 following a 1.8% decline in 2009. Strong export demand led to growth in forestry and logging and manufactured wood products.

Support activities for mining and oil and gas extraction expanded by 33% and coal mining increased by 27% as energy prices strengthened. Construction output rose 11% as work began at new mine sites and on oil and gas engineering projects. Utilities output declined as a result of lower export demand.

The Olympic Winter Games had a positive impact on industries such as performing arts and spectator sports and accommodation and food services.

Residential construction advanced. Conversely, the resale house market retreated in 2010, leading to lower sales and output for real estate agents and brokers.
The territories

In Yukon, GDP increased by 5.3% in 2010 following a 3.6% increase in 2009. Non-residential construction increased as work began on a number of community and health services buildings.

Total mining sector output rose on the strength of support activities for mining and oil and gas extraction. Output in the services sector was up, with gains in retail trade, accommodation and food and government services.

In the Northwest Territories, output increased 5.3% in 2010 after falling by 11% in 2009. Construction and mining activity were the main contributors and led to increases in wholesale trade and transportation services.

Higher commodity prices led to increases in support activities for mining and oil and gas extraction and diamond mining. Oil and gas and other engineering construction increased. Non-residential construction also contributed to the growth.

In Nunavut, GDP advanced 8.9% in 2010 following a 6.2% decline in 2009. With the opening of a new mine, mining output increased while engineering construction activity declined.

Heightened exploration activity led to higher output of support activities for mining and oil and gas extraction. Non-residential construction, mainly of institutional buildings, also contributed to the advance.

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