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GDP
Canadian Economy (NAICS 11-91)
Under this topic you will find information on Gross Domestic Product (GDP) levels and growth in the Canadian Economy (NAICS 11-91). You can use this information to assess the general health of the economy and to identify trends in its growth.
- GDP and Growth in the Canadian Economy
- GDP by Sector of the Canadian Economy
- Important Notes on Gross Domestic Product Data
- Understanding GDP and Value-Added
- Understanding GDP and Economic Growth
GDP and Growth in the Canadian Economy
Between 2001 and 2010, GDP for all industries in the Canadian economy increased from $1,041 billion to $1,234 billion. In each year of the period, GDP growth has been positive with the exception of 2009 in which we saw a decline for the Canadian economy. The compound annual growth rate of GDP between 2001 and 2010 measured 1.7%.
Gross Domestic Product (GDP) and GDP Growth: 2001-2010
Canadian Economy (NAICS 11-91)
Source: Statistics Canada, Gross Domestic Product by Industry, 2001 to 2010.
GDP growth in 2001 and 2002 was much slower, with annual growth rates below the 10 year compound annual rate. However, in 2003, annual GDP growth slipped to 2.1, corresponding with a down-turn in the United States economy. GDP growth rates went on to rebound and remained steady around 2% and 3% until 2008, when a global recession trimmed annual GDP growth to 0.6% falling again in 2009 to an all time low of 2.8%. In 2010, we begin to see another rebound with the GDP growth increasing to 3.3%.
GDP by Sector of the Canadian Economy
The table below shows GDP chained-dollar levels as well as short and long-term GDP growth rates for each sector of the Canadian economy.
| NAICS Code |
Sector | GDP* (millions of chained 2002 dollars) | CAGR** 2001-2010 |
% Change 2009-2010 |
|
|---|---|---|---|---|---|
| 2001 | 2010 | ||||
|
*GDP is expressed in chained 2002 dollars in order to maintain accurate growth rates. Chained levels are non-additive, therefore sector values will not add up to the value for the Canadian economy. **Compound annual growth rate. ***GDP values for these three sectors are combined. Source: Statistics Canada, Gross Domestic Product by Industry, 2001 to 2010. |
|||||
| 11 | Agriculture, Forestry, Fishing and Hunting | 24,674 | 26,357 | 0.7% | 0.3% |
| 21 | Mining and Oil and Gas Extraction | 51,236 | 53,930 | 0.5% | 4.8% |
| 22 | Utilities | 27,384 | 29,845 | 0.9% | -0.2% |
| 23 | Construction | 55,542 | 73,856 | 2.9% | 6.6% |
| 31-33 | Manufacturing | 181,084 | 159,740 | -1.2% | 5.7% |
| Goods Producing
Industries (NAICS 11-33) |
339,779 | 347,710 | 0.3% | 4.9% | |
| 41 | Wholesale Trade | 53,438 | 69,513 | 2.7% | 5.3% |
| 44-45 | Retail Trade | 55,234 | 76,319 | 3.3% | 3.8% |
| 48-49 | Transportation and Warehousing | 50,176 | 58,439 | 1.5% | 4.3% |
| 51 | Information and Cultural Industries | 36,498 | 45,634 | 2.3% | 0.7% |
| 52, 53, 55*** | Finance and Insurance, Real Estate and Leasing and Management of Companies and Enterprises | 196,769 | 257,454 | 2.7% | 2.6% |
| 54 | Professional, Scientific, and Technical Services | 47,453 | 60,804 | 2.5% | 0.6% |
| 56 | Administrative and Support, Waste Management and Remediation Services | 22,820 | 30,566 | 3.0% | 1.6% |
| 61 | Educational Services | 50,675 | 62,626 | 2.1% | 2.2% |
| 62 | Health Care and Social Assistance | 67,198 | 82,962 | 2.1% | 2.3% |
| 71 | Arts, Entertainment and Recreation | 10,142 | 11,265 | 1.1% | 0.9% |
| 72 | Accommodation and Food Services | 24,950 | 27,410 | 0.9% | 2.6% |
| 81 | Other Services (except Public Administration) | 26,101 | 32,483 | 2.2% | 1.6% |
| 91 | Public Administration | 59,705 | 74,892 | 2.3% | 2.3% |
| Services-Producing
Industries (NAICS 41-91) |
701,115 | 890,219 | 2.7% | 2.6% | |
| Canadian Economy (NAICS 11-91) |
1,040,943 | 1,233,611 | 1.9% | 3.3% | |
The activities of goods-producers account for nearly one third of total value-added of all industries in the Canadian economy. Between 2001 and 2010, GDP growth for goods-producers increased an average of 0.2% per year, which was below the average annual GDP of 1.7% recorded for the Canadian economy.
In 2010, annual GDP growth for the Canadian economy increased to 3.3% compared to a decrease of 2.7% in 2009. The GDP growth for goods-producers increased to 4.9% in 2010 recovering from a decline of 9.9% in 2009.
The Mining and Oil and Gas Extraction saw an increase in 2010, GDP increased 4.8% following a decrease of 8.8% in 2009. Increasing prices for energy products and many other commodities, as well as an economic turnaround, helped to drive output higher.
GDP for the Manufacturing sector had been in decline since 2005. A decrease of 11.3% in 2009 was followed by an increase of 5.7% in 2010 as this important sector contributed to an increase in the goods-producing industries and a growth in the Canadian economy in general.
Another goods-producing sector that saw its GDP increase in 2010 was the Agriculture, Forestry, Fishing and Hunting sector. The 0.3% increase in GDP in 2010 followed a decline of 6.7% in 2009. The Construction sector saw an increase of 6.6% in 2010 recovering from a 9.9% decrease in 2009.
The Utilities sector was the only sector to experience a decline in 2010. It fell 0.2% faster than its 4.4% decrease in 2009.
The activities of services-producers account for more than two-thirds of total industry-based GDP in Canada. Between 2001 and 2010, GDP growth for the sectors that produce services averaged 2.4% per year. While annual growth for the services-producing industries was up from 0.3% in 2009 to 2.6% in 2010.
While the services-producing industries were not immune to the global economic down-turn that began in the latter half of 2009, relatively hardy domestic demand allowed the services-producing segment of the economy to maintain some growth in 2010, while the goods-producing industries also saw growth in 2010.
All of the services-producing sectors posted an increase in GDP growth in 2010.
The largest increases were registered in the Wholesale Trade sector and the Transportation and Warehousing sector. The Wholesale Trade sector posted the biggest increase in 2010. It recorded a 5.3% growth in GDP compared to an decrease of 6.6% in 2009. The Transportation and Warehousing sector registered 4.3% GDP growth rate in 2010, up from a 3.5% decrease in 2009.
The Health Care and Social Assistance sector saw a slight increase of 2.3% in its GDP in 2010. Slightly less than the increase of 2.7% in 2009.
The Retail Trade sector saw an increase of 3.8% in 2010 following a decline of 0.4% in 2009. The Other Services sector posted an increase in growth of 1.6% in 2010, following a decrease of 0.4% growth in 2009.
The Accomodation and Food Services sector posted an increase in growth in 2010 of 2.6%, following a 2.0% decline in growth in 2009. GDP also showed an increase in the Educational Services sector 2.2% in 2010 and 1.8% in 2009.
The grouping of Finance and Insurance, Real Estate and Leasing and Management of Companies and Enterprises (2.6% in 2010 and 2.3% in 2009) also saw an increase in 2010.
Output for the Information and Cultural Industries sector increased by 0.7% in 2010. Output had declined 0.1% in 2009. The slight increase in GDP growth in the Professional, Scientific and Technical Services sector was less pronounced, with 0.6% growth in 2010 but an improvement from a 0.3% decline in growth in 2009.
GDP growth for the Administrative and Support, Waste Management and Remediation Services sector increased to 1.6% in 2010 following a 3.6% decline in growth in 2009. GDP growth for the Arts, Entertainment and Recreation sector in 2010, showed a 0.9% increase following a 0.8% increase in 2009.
Important Notes on Gross Domestic Product Data
The GDP by Industry data in the present section are maintained by Statistics Canada's Canadian System of National Economic Accounts. The data are expressed in basic prices and presented in chained 2002 dollars. The process of chaining removes the effect of changes in price while minimizing distortion over time. In this section data are available for the years 2001-2010.
Readers should be aware that there are other ways of expressing Gross Domestic Product aside from those presented here (e.g. expenditure-based and income-based rather than by industry; at factor cost and market prices rather than at basic prices and in constant dollars as opposed to chained dollars). As a result, caution is recommended when comparing the data presented herein with other published sources.
The Gross Domestic Product (GDP) by Industry data within the present section does not define or examine recessionary periods for the Canadian economy, sectors, subsectors or industries. This type of analysis is possible through examining more precise quarterly and monthly trends. Monthly data are available from the Statistics Canada website (see Gross domestic product at basic prices by industry).
Understanding GDP and Value-Added
Gross Domestic Product (GDP) by Industry measures the value of output of an industry less the value of intermediate inputs required in the production process. In this sense, it is an output-based measure of economic activity and is commonly referred to as the total value-added of an industry.
The value-added concept is used to avoid double counting. For instance, GDP in the Retail Bakeries industry would not include the value of the flour used to make a loaf of bread, it would only include the value the Retail Bakeries industry adds by turning the flour into bread (for example, the mixing, leavening and baking process).
This example of value-added (GDP) can be broadened to illustrate the total value of a loaf of bread. Let us suppose we live in a simple world where the only two inputs needed to make bread are flour and water. And for the moment, let us assume water is free.
So as before, it is the baker who turns the flour into bread. This process is his value-added (GDP). For the baker, flour is an input into the production of bread, thus the value of the flour is not included in the value-added (GDP) of the baker.
The baker buys his flour from the miller, who produces flour by grinding wheat. So the value-added (GDP) of manufacturing flour is captured by the miller. Since the miller purchases wheat as an input, the value of wheat is not included in the value-added (GDP) of the miller.
Who does the miller buy his wheat from? From the farmer, who harvests the wheat from his land using his blood, sweat and tears. Then, the value-added (GDP) of wheat, which is ground to produce flour by the miller to make a loaf of bread by the baker, is captured by the farmer.
Since our baker owns a retail bakery, and sells his wares directly to market, the total value of the bread would equal the value-added of the farmer plus the value-added of the miller plus the value-added of the baker.
Understanding GDP and Economic Growth
Economic growth is often measured as the percentage increase in GDP, adjusted for inflation, from one year over an earlier year. Trend growth rates for an economy, sector or industry are calculated over a series of years. In Canadian Industry Statistics, the compound annual growth rate (CAGR) is frequently used to depict trends in real GDP growth and other economic indicators.
GDP growth is an important economic indicator. It measures progress or the rate of expansion of the economy's capacity to produce output (goods and services). It is examined as a measure of the short term stability or instability of the economy. GDP growth is also reflective of the future consumption possibilities for a nation and is the main source of improvements to our standard of living over time.
Economic growth occurs from accumulating human capital (knowledge and skills), investing in physical capital (factories, machinery and equipment) and the implementation of new technologies in the production process.
With benefits to economic growth come costs. One cost to economic growth is that in order to increase the consumption possibilities for tomorrow, we have to forego some consumption today. To maintain economic growth more effort has to be placed on the production of technology and capital in order to produce goods for future consumption, rather than the production of goods for current consumption.
Other costs may occur from sustaining a high rate of economic growth, such as resource and environmental degradation. However, the impact faster economic growth has on our environment and resources are not reflected in the measure GDP growth.
