Natural resource indicators, first quarter 2021
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Released: 2021-06-23
Natural resources real gross domestic product on the rise
Real gross domestic product (GDP) of the natural resources sector rose 2.9% in the first quarter of 2021, the third consecutive quarterly increase.
The rise in the natural resources sector was strong, compared with economy-wide real GDP (+1.4%), reflecting growing demand for natural resource products as the country recovers from the pandemic.
Chart 1
Natural resources real gross domestic product
The first quarter real natural resource GDP increase was broad-based.
Real GDP of the energy subsector increased 2.6%, largely from export-led gains in production due to increased consumption and positive price trends.
Real GDP of the mineral and mining subsector (+5.1%) rose for the third consecutive quarter as production increased following rising prices.
Non-metallic minerals rebounded 8.8%, following a 9.4% drop in real GDP in the previous quarter. Many potash mines reopened following COVID-19-related closures. Potash prices and demand rose in the first quarter. Metallic minerals real GDP increased 5.8% in the first quarter, driven by the strength of copper production.
Real GDP of the forestry subsector edged up 1.9%, the third consecutive quarterly increase. This was largely due to an increase in demand for lumber caused by a rise in housing construction. In March, housing starts rose 21.6%.
Hunting, fishing and water real GDP declined 1.0% in the first quarter.
Export and import volumes rise
Natural resources export volumes rose 2.5% in the first quarter, following a 6.5% rise in the fourth quarter of 2020. Exports of forestry (+0.3%) and energy (+4.7%) rose due to the easing of COVID-19-related economic restrictions and higher energy demand due to cold weather during the first quarter. Minerals and mining exports fell 1.5% due to a reduction in input demand. Hunting, fishing and water exports saw an increase of 4.0%.
The increase in import volumes (+4.1%) was led by minerals and mining (+8.1%), followed by energy (+0.4%). Imports were led by increased demand for raw materials from manufacturers returning to full capacity as they recover from lockdowns. Imports in the forestry subsector decreased by 1.6% and hunting, fishing and water imports rose 1.3%.
Natural resource prices and nominal GDP increase
Overall, natural resources prices rose 4.3%, led by an 11.6% increase in forestry prices due to an increased demand in primary sawmill and wood products.
Chart 2
Natural resource prices
A 16.2% increase in primary sawmill and wood contributed to the rise in overall natural resources nominal GDP (+7.3%). Nominal GDP of the minerals and mining subsector increased 10.8%. The nominal GDP of forestry subsector increased 13.7%. Expressed at an annual rate, nominal natural resources GDP was $224 billion in the first quarter, representing 9.9% of the Canadian economy.
Employment continues to rise
Employment in the natural resources sector rose 2.1% in the first quarter, the third consecutive quarterly increase. This rate surpasses that of total employment in Canada, which increased 1.0% from the fourth quarter of 2020 to the first quarter of 2021. Job recovery was strongest in the energy subsector (+5,900 jobs), followed by minerals and mining (+4,600 jobs) and forestry (+1,800 jobs).
Chart 3
Employment changes, first quarter of 2021
Downstream activities increase
For analytical purposes, secondary and tertiary processing for the forestry and minerals and mining subsectors are identified separately. The nominal GDP of these downstream activities reached $8.6 billion, a 6.6% increase. Prices increased 4.8% in the first quarter following a 1.3% increase in the fourth quarter of 2020.
Note to readers
Data on natural resources for the first quarter of 2021 have been released along with revised data from the first quarter to the fourth quarter of 2020.
The natural resource indicators provide quarterly indicators for the main aggregates in the Natural Resource Satellite Account (NRSA), namely, gross domestic product, output, exports, imports and employment. The estimates from this account are directly comparable to the estimates in the Canadian System of Macroeconomic Accounts.
Employment estimates reported in this release align with the following definitions of natural resource subsectors. Consequently, these estimates may differ from those released by the labour productivity program.
Core natural resources: The NRSA defines natural resource activities as those that result in goods and services originating from naturally occurring assets used in economic activity, as well as their initial processing (primary manufacturing).
Downstream activities: Although not part of the core account, natural resources have important downstream effects on other sectors. In general, this production uses a large portion of primary manufactured products as inputs.
Next release
Data on natural resource indicators for the second quarter of 2021 will be released on September 22, 2021.
Correction note
The percentage of total GDP attributable to Natural Resources was initially reported at 10.8% for the first quarter 2021. On June 24, 2021, it was corrected to 9.9%.
Products
The Economic accounts statistics portal, accessible from the Subjects module of our website, features an up-to-date portrait of national and provincial economies and their structures.
Additional information can be found in the articles "The Natural Resources Satellite Account: Feasibility study" and "The Natural Resources Satellite Account – Sources and methods," which are part of the Income and Expenditure Accounts Technical Series (13-604-M).
The Latest Developments in the Canadian Economic Accounts (13-605-X) is available.
The User Guide: Canadian System of Macroeconomic Accounts (13-606-G) is available.
The Methodological Guide: Canadian System of Macroeconomic Accounts (13-607-X) is available.
Contact information
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