Provincial and territorial economic accounts

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Alberta led the country in growth again in 2006, continuing to build on its booming oil industry, the impact of which rippled across its economy.

Economic growth was widespread as several Western Provinces, as well as two of the four Atlantic Provinces registered growth rates above the national average.

Nationally, gross domestic product (GDP) increased 2.8% in 2006, a slightly slower pace than the 3.1% gain in 2005. Services production generally outpaced goods production.

Growth increased 6.6% in Alberta, the fastest pace of all provinces and territories. Continued investment in Alberta's oil-patch rippled through all sectors in the province.

Newfoundland and Labrador, New Brunswick and Nunavut were helped by increased production in their mining industries. Good crop conditions and busy construction sites pushed economic growth up in both Prince Edward Island and Manitoba (correction).

Retail and wholesale trade gave a lift to British Columbia, Quebec and Ontario. This effect was dampened, however, in the Central Canadian Provinces by weakness in the manufacturing sector.

Saskatchewan and Nova Scotia both experienced downturns in their mining, and oil and gas extraction industries, keeping growth in these provinces below the national pace. Saskatchewan was further affected by a smaller crop in 2006 and was the only province to register a decline in GDP.

Construction played an important role in the North, as growth in Yukon was slowed by a decline in this activity, while growth in the Northwest Territories was bolstered.

Between 2003 and 2006, most of the growth was in Western Canada, with Saskatchewan, Alberta, and British Columbia leading the way. The provinces and territories with the strongest growth over this period generally benefited from upturns in primary industries, such as agriculture, mining, and oil and gas extraction.

Growth rates for real GDP in the provinces and territories have been revised from 2003 to 2006. Overall, the picture of economic growth remained the same. Growth rates were revised up in 2006 for five jurisdictions: Newfoundland and Labrador, Prince Edward Island, New Brunswick, Ontario, and the Northwest Territories. Growth rates in Nova Scotia, Manitoba, Saskatchewan, Alberta, British Columbia, and Nunavut were revised down. The growth rates in Quebec and in Yukon remained the same.

Commodity prices continue to energize economies in Western Canada

Alberta led the country in economic growth for the third consecutive year. High oil prices accelerated investment in the oil patch. The economic impact of the development of the oil sands in northern Alberta rippled across the province. An influx of workers boosted personal income and, in turn, increased demand for new homes and other goods and services. Construction continued at a feverish pace.

British Columbia also benefited from a boom in construction, although overall growth in economic activity slowed to 3.3%. Strong population growth and projects related to the upcoming Olympic Games have spurred on investment in construction. In 2006, service industries such as retail and wholesale trade, along with financial services, were important contributors to the economy.

Busy construction sites pushed economic growth to 3.2% in Manitoba, above the national average for the first time since 1998. An increase in hydro-electricity output in 2005 and a good crop in 2006, combined with growing investment in residential and non-residential construction, moved Manitoba's economy forward.

After three years of strong growth, the Saskatchewan economy slipped 0.4% in 2006. A smaller crop along with a downturn in several key mining industries contributed to the decline. However, with high commodity prices, income levels remained relatively strong in 2006.

Domestic demand supports Central Canada

Retail and wholesale trade continued to support the economies of Ontario and Quebec as income levels remained strong. Business investment, particularly in Ontario, also continued to boost the economy.

Despite this, the growth rates for both Ontario and Quebec have remained below the national average over the last four years. The economy advanced 2.1% in Ontario in 2006 and 1.7% in Quebec.

The Quebec and Ontario economies were hurt by a rising Canadian dollar and a slowdown in US demand. Manufacturing, lethargic throughout the past four years, experienced a sharp drop in 2006 as motor vehicle makers in Ontario were hard hit by a reduction in export demand.

Stronger economic activity returns to Eastern Canada

After two years of below-average growth, two of the four Eastern Provinces exceeded the national average in 2006.

Economic activity jumped 3.3% in Newfoundland and Labrador after remaining flat in 2005. The first full year of production at the Voisey's Bay nickel mine and the White Rose oil field contributed to this advance.

New Brunswick also registered an upturn in its economic fortunes in 2006 (+3.0%). After two years of slow growth, gains in manufacturing, forestry and construction pushed the province forward. Investment in non-residential construction was particularly strong.

A 2.6% gain in Prince Edward Island was fuelled by a good potato crop and renewed strength in the province's construction industry. Exports also advanced, contributing to a rise in corporate profits.

Nova Scotia was one of two Eastern Provinces to lag the national average in 2006 (+0.9%). A big upswing in construction investment was offset by a decrease in most of the primary goods-producing industries, including natural gas production. Exports fell in 2006 as a result of this weakened production.

Construction an important part of the territorial economies

Large construction projects have played an important role in the territorial economies over the past few years.

In 2006, Nunavut benefited from the economic activity at the Jericho diamond mine. The territory's economy advanced 3.4% in 2006 on the heels of a decline (-0.2%) in 2005.

In Yukon, a downturn in construction activity in 2006, following two years of big increases, led to slower growth. Yukon's economy advanced 2.9% in 2006, compared with 3.9% in 2005.

The Northwest Territories have experienced large variations in growth over the past few years. Substantial increases in construction investment from 2004 to 2006 propelled the economy forward. The economy grew 2.9% in 2006, rebounding from a sharp downturn (-2.5%) in 2005.

Products, services and contact information

Detailed analysis and tables

All of Statistics Canada's information and data on the System of National Economic Accounts are available through the National Economic Accounts module, accessible from the home page of our website.

More detailed analysis on today's releases from the national accounts, including additional charts and tables, can be found in the 2006 issue of Provincial and Territorial Economic Accounts Review, Vol. 3, no. 2 (13-016-XWE), now available on our website. From the Publications module, choose Free Internet publications, then National accounts.

Provincial economic accounts, 2003 to 2006

Available on CANSIM: tables 384-0001, 384-0002, 384-0004 to 384-0013 and 384-0036.

Definitions, data sources and methods: survey numbers, including related surveys, 1303, 1401, 1402 and 1902.

Revised provincial and territorial economic accounts estimates for 2003, 2004 and 2005 are included with this release. Updated estimates of the preliminary 2006 data that were released on April 25, 2007, are also included.

The provincial and territorial economic accounts include estimates of the income- and expenditure-based GDP, real GDP, contributions to percent change in real GDP, implicit price indexes, sources and disposition of personal income, and government detail tables. The government detail tables include revised revenue and expenditure data for 2003 and 2004 based on public accounts and new estimates for 2005.

Summaries by sub-sector of government (federal, provincial, local, Canada Pension Plan and Quebec Pension Plan) are provided in tables 6 to 10. Revenue side details are presented in tables 11 to 13. Table 11 disaggregates direct taxes, social insurance contributions, and transfers paid by persons to governments. Table 12 presents the components of taxes on production and products, while Table 13 lists the sources of government investment income. On the expenditure side, major transfers to persons are presented in Table 14, while subsidies and capital transfers, to both the personal and business sectors, can be found in Table 15. Finally, Table 16 lists the most important current transfers between levels of governments.

The publication, Provincial Economic Accounts, Tables and Analytical Document, 2006 (13-213-PPB, $54), is now available. The accounts can also be obtained on diskette (13-213-DDB, $428). The diskette can also be purchased at a lower cost seven business days after the official release date (13-213-XDB, $86). To purchase any of these products, contact Client Services (613-951-3810; iead-info-dcrd@statcan.gc.ca), Income and Expenditure Accounts Division.

For more information, or to enquire about the concepts, methods or data quality of this release, contact the information officer (613-951-3640; iead-info-dcrd@statcan.gc.ca), Income and Expenditure Accounts Division.

Provincial gross domestic product by industry

Available on CANSIM: tables 379-0025 and 379-0026.

To purchase data on provincial gross domestic product by industry at basic prices, contact Client Services (toll-free 1-800-887-4623; imad@statcan.gc.ca), Industry Accounts Division.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Bruce Cooke (613-951-9061; cookeb@statcan.gc.ca), Industry Accounts Division.

Input-output tables (2003 final and 2004 preliminary)

The publications, Provincial Gross Domestic Product (GDP) by Industry and Sector at Basic Price (15-209-XCB, $535), and Provincial Gross Output by Industry and Sector (15-210-XCB, $535) are now available in CANSIM (tables 381-0015 and 381-0016). Symmetric industry-by-industry national and provincial input-output tables are also available on demand. To purchase any of these new products, contact Client Services (toll-free 1-800-877-4623; iad-info-dci@statcan.gc.ca), Industry Accounts Division.

Available on CANSIM: tables 379-0023, 379-0024, 381-0009 to 381-0016 and 386-0002.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Ronald Rioux (613-951-3697; riouxr@statcan.gc.ca), Industry Accounts Division.

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