Canada Provincial and Territorial Economic Accounts (Text)

Following is the text of the 2010 gross domestic product report on provinces and territories released by Statistics Canada.

Provincial and territorial economic accounts

2010 Real gross domestic product (GDP) increased in every province and territory in 2010, a rebound from the previous year when most provinces recorded declines or no gain. Nationally, real GDP increased 3.2% following a 2.8% contraction in 2009.

Real gross domestic product, 2010

Nationally, business investment increased in the three major categories of fixed capital: residential structures, non- residential structures as well as machinery and equipment. Corporate profits rose 21% as commodity prices and overall demand increased.

Output in all major goods-producing industries and services- producing industries was up in 2010. Exports increased 6.4%, following a 14% drop in 2009.

Provincially, the resource-based economies of Alberta, Saskatchewan and Newfoundland and Labrador recorded increases in real GDP above the national average. Output rose 6.1% in Newfoundland and Labrador, the largest increase among the provinces. In the territories, Nunavut recorded the largest increase (+11%).

An important contributor to growth in Alberta and Newfoundland and Labrador was business investment, while in Saskatchewan it was a return to growth in international exports.

Atlantic Canada The economic expansion in Newfoundland and Labrador in 2010 followed a 9.0% decline in real GDP in 2009. Final domestic demand advanced 8.8%, the largest annual increase among the provinces.

In Prince Edward Island, real GDP rose 2.6%. Business investment and consumer spending increased in step with the national average. Export growth was held in check by a 2.1% decline in exports to other countries.

In Nova Scotia, output increased 1.9%. Exports of seafood and rubber products were notable contributors to an overall increase in exports of 3.6%. Consumer spending increased 2.1%.

New Brunswick’s economy expanded 3.1%. Government fixed capital formation increased 38%, as work continued on a number of large infrastructure-related projects.

Central Canada Output in Quebec increased 2.5% in 2010 as final domestic demand rose 4.2%. All categories of business investment increased; growth in government investment was on par with the increase in 2009. Exports increased 0.8% while imports rose 5.3%.

Ontario’s economy increased 3.0% in 2010, following a 3.2% contraction in 2009. Growth in 2010 was mostly a result of increased external demand for the province’s goods and services, as international exports expanded considerably, particularly for motor vehicles.

The West Real GDP in Manitoba increased 2.4% in 2010. Consumer spending increased 3.4% while business investment rose 9.3%. Overall government investment in fixed capital rose 27% following a decrease in 2009.

Saskatchewan’s real GDP rebounded in 2010, growing 4.0%, following a decline of a similar magnitude in 2009. Final domestic demand advanced 3.5% on the strength of business investment.

Alberta’s real GDP rebounded 3.3% in 2010 after falling in 2009. Personal spending on goods and services as well as investment on residential housing, both advanced, contributing to the economic expansion.

In British Columbia, real GDP advanced 3.0%. The main contributor was a 3.8% increase in consumer spending, the largest among the provinces.

The territories Output in Yukon increased 3.7%. Growth in consumer spending and business investment was well above the national average, and were more than enough to compensate for a decline in exports.

In the Northwest Territories, real GDP rose 1.1%. The main contributor was a 16% advance in business investment. Consumer spending increased 1.4%, while exports were up 2.7%.

In Nunavut, real GDP advanced 11%. Exports increased sharply, as a result of a new mine that began production in 2010.

Resource-based economies represent larger share of national income The size of the resource-based economies of Alberta, Saskatchewan and Newfoundland and Labrador has been increasing relative to the Central Canadian economies over the last decade.

In 2000, Alberta, Saskatchewan and Newfoundland and Labrador combined accounted for 18% of domestic incomes, while Ontario and Quebec combined accounted for 62%.

By 2010, the resource-based economies of Alberta, Saskatchewan and Newfoundland and Labrador had increased their share to 22%, while Ontario and Quebec’s combined share had fallen to 57%.

Provincial and territorial economic accounts, 2010 This release of provincial and territorial economic accounts is an update of the GDP by industry data released on April 28, 2011 and the GDP by income and expenditure data released in November 2010. This release incorporates the input-output benchmarks of 2008, the revisions to the national Income and Expenditure Accounts released in May 2011, and the revisions to the national GDP by industry data released in September 2011. In addition, updated provincial survey data and improved methodologies have contributed to revised measures of both the provincial GDP by income and expenditure and the provincial GDP by industry for the years 2008 to 2010.

Note to readers Important changes are coming to Canada’s System of National Accounts (CSNA), starting in May 2012. These changes will affect all users of CSNA products and statistics such as gross domestic product, balance of payments, international investment, and input-output tables. For more information, consult Canadian System of National Accounts 2012 Historical Revision.

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 release, including additional charts and tables, can be found in the 2010 issue of Provincial and Territorial Economic Accounts Review (13-016-X, free).

To contact the reporter on this story: Kristy Scheuble in Washington at kmckeaney@bloomberg.net

To contact the editor responsible for this story: Marco Babic at mbabic@bloomberg.net

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