Natural resource indicators, first quarter 2023
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Released: 2023-06-22
Natural resources real gross domestic product falls in the first quarter
Real gross domestic product (GDP) of the natural resources sector decreased 0.2% in the first quarter after dropping 1.8% in the fourth quarter of 2022.
In contrast, the economy-wide real GDP rose 0.8% in the first quarter after remaining steady (+0.0%) in the fourth quarter of 2022.
Chart 1
Natural resources real gross domestic product
The decrease in real GDP in the first quarter was driven by declines in the forestry (-1.3%) and minerals and mining (-0.8%) subsectors. The energy subsector (+0.1%) grew slightly in the first quarter after decreasing 1.7% in the previous quarter. The decline in forestry was driven by a decrease in demand for primary sawmill and wood products (-3.7%) due to slowdowns of new construction and renovations during the first quarter. In the minerals and mining subsector, increased real GDP of coal (+10.7%) partially offset the decline of non-metallic minerals (-6.0%).
Quarterly export volumes remain steady and import volumes fall
Natural resource exports were flat in the first quarter, with forestry (-2.0%) and energy (-0.6%) declines being offset by minerals and mining (+2.1%) increases.
Import volumes of the natural resources sector (-1.4%) were down in the first quarter. Higher import volumes in the energy subsector (+4.0%) were driven by rising imports of crude oil (+8.7%), which were partially offset by a decrease of natural gas (-14.3%) imports. Import volumes decreased in the first quarter for the minerals and mining (-7.2%), forestry (-5.1%) and hunting, fishing and water (-1.7%) subsectors, which more than offset the increase in the energy subsector.
Natural resource prices fall
Overall, natural resource prices continued to fall in the first quarter, posting a 3.7% decline. Prices in the energy (-6.7%) and forestry (-3.7%) subsectors decreased in the first quarter. Natural gas (-18.7%) and crude oil (-7.3%) led the decrease in energy. Natural gas prices were particularly affected by warmer-than-expected weather in the first quarter in the United States and Europe. Crude oil prices were down based on higher production and weaker economic demand. Primary sawmill and wood products (-6.3%) influenced the decrease in forestry prices, as a slowing residential housing market in Canada and the United States caused lower demand. Prices in the minerals and mining subsector (+4.3%) increased due to strong metallic minerals prices (+13.5%), but an 8.5% drop in coal prices tempered these gains.
Chart 2
Natural resource prices
In the first quarter, falling prices caused the nominal GDP of natural resources to fall 3.9% to $326 billion at annual rates, representing 12.4% of the Canadian economy.
Employment increases
Employment in the natural resources sector rose 0.1% in the first quarter after falling 0.1% in the fourth quarter. The energy (+2,900 jobs) and hunting, fishing and water (+300 jobs) subsectors recorded increases in employment, while forestry (-1,900 jobs) and minerals and mining (-700 jobs) saw decreases.
Chart 3
Employment changes, first quarter of 2023
Downstream activities
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 $11.2 billion in the first quarter, a 3.0% increase. Prices decreased 0.8% following a 0.8% increase in the fourth quarter of 2022.
Note to readers
Data on natural resources for the first quarter of 2023 have been released along with revised data from the first to the fourth quarter of 2022.
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 with the estimates in the Canadian System of Macroeconomic Accounts.
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.
Employment estimates reported in this release align with the noted definitions of natural resource subsectors. Consequently, these estimates may differ from those released by the labour productivity program.
Next release
Data on natural resource indicators for the second quarter will be released on September 25.
Products
For more information on energy in Canada, including production, consumption, international trade and much more, please visit the Canadian Centre for Energy Information website and follow #energynews on social media.
The Economic accounts statistics portal, accessible from the Subjects module of the Statistics Canada 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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