GDP

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

Between 2007 and 2012, GDP for all industries in the Canadian Economy increased from $1,466.8 billion to $1,553.0 billion. The compound annual growth rate of GDP between 2007 and 2012 measured 1.0%.

The annual GDP for 2012 showed an increase of 2.6% in 2011 to 1.8% in 2012.

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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.

Source: Statistics Canada, Gross Domestic Product by Industry, 2007-2012.

The activities of goods-producers account for nearly one third of total value-added of all industries in the Canadian economy. In 2012, only the Manufacturing sector posted a negative CAGR of 1.6%.

The Mining and Oil and Gas Extraction saw a increase in GDP of 5.8% in 2011 only to drop to 0.3% in 2012.

The Agriculture, Forestry, Fishing and Hunting sector saw an increase in the GDP of 2.5% in 2011 which then dropped to 0.9% in 2012.

The Utilities sector GDP saw a rate of 3.9% in 2011 decline to 0.1% in 2012.

The Construction section of the goods-producing industry saw an increase in growth rates, of 2.4% from 2007 to 2012.

An increase was registered in the Professional, Scientific, and Technical services sector. It recorded a 2.0% GDP growth rate from 2011 to 2012.

The Health Care and Social Assistance sector saw an increase of 2.0% in its GDP for 2012.

Also increasing is the Retail Trade sector, which rose to 1.6%, in 2012.

The Other Services sector posted an increase in growth of 0.8% from 2011 to 2012.

The Accommodation and Food Services sector posted another increase in growth of 2.6% from 2011 to 2012. The GDP increase in the Educational Services sector to 1.3% in 2012 from its 1.0% in 2011.

The grouping of Finance and Insurance, Real Estate and Leasing and Management of Companies and Enterprises saw an increase of 2.1%, 2.9% and 2.9% in 2012.

In 2012, output for the Information and Cultural Industries sector increased by 1.4% in 2012.

GDP growth for the Administrative and Support, Waste Management, and Remediation Services sector increased by 1.7% in 2012, following a 1.1% growth from 2011.

GDP growth for the Arts, Entertainment and Recreation sector showed a 1.1% decrease in 2011 to a 1.3% decrease in 2012.

The Wholesale Trade sector suffered a decline from 3.8% in 2011 to 2.5% in 2012.

The Transportation and Warehousing industries increased to 1.5% in 2012.

The Public Administration sector decreased from 1.2%, in 2011 to 0.0% in 2012.

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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 2007 dollars. The process of chaining removes the effect of changes in price while minimizing distortion over time.

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).

Economic growth is often measured as the percentage increase in GDP, which is 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 the 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. For instance, 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 measurements of GDP growth.

Footnotes

Footnote 1

GDP is expressed in chained 2007 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.

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Footnote 2

Compound Annual Growth Rate

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