Provincial and Territorial Economic Accounts Review
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In 2010, real gross domestic product (GDP) increased in every province and territory, a rebound from the previous year when most provinces recorded declines or no gain. Nationally, real GDP increased 3.2% following a 2.8% contraction in 2009
Chart 1 Real gross domestic product, 2010
Description for Chart 1
Nationally, business investment increased in the three major categories of fixed capital—residential structures, non-residential structures, and machinery and equipment. Corporate profits rose 21% as commodity prices and overall demand increased.
Output in all major goods-producing industries and services-producing industries was up in 2010. Exports increased 6.4%, following a 14% drop in 2009.
Provincially, the resource-based economies of Alberta, Saskatchewan and Newfoundland and Labrador recorded increases in real GDP above the national average. Output rose 6.1% in Newfoundland and Labrador, the largest increase among the provinces. In the territories, Nunavut recorded the largest increase (+11%).
An important contributor to growth in Alberta and Newfoundland and Labrador was business investment, while in Saskatchewan it was a return to growth in international exports.
The economic expansion in Newfoundland and Labrador in 2010 followed a 9.0% decline in real gross domestic product in 2009. Final domestic demand advanced 8.8%, the largest annual increase among the provinces.
In Prince Edward Island, real GDP rose 2.6%. Business investment and consumer spending increased in step with the national average. Export growth was held in check by a 2.1% decline in exports to other countries.
In Nova Scotia, output increased 1.9%. Exports of seafood and rubber products were notable contributors to an overall increase in exports of 3.6%. Consumer spending increased 2.1%.
New Brunswick's economy expanded 3.1%. Government fixed capital formation increased 38% as work continued on a number of large infrastructure-related projects.
Output in Quebec increased 2.5% in 2010 as final domestic demand rose 4.2%. All categories of business investment increased; growth in government investment was on par with the increase in 2009. Exports increased 0.8%, while imports rose 5.3%.
Ontario's economy increased 3.0% in 2010, following a 3.2% contraction in 2009. Growth in 2010 was due mostly to increased external demand for the province's goods and services, as international exports expanded considerably, particularly for motor vehicles.
Real GDP in Manitoba increased 2.4% in 2010. Consumer spending increased 3.4% while business investment rose 9.3%. Overall government investment in fixed capital rose 27% following a decrease in 2009.
Saskatchewan's real GDP rebounded in 2010, growing 4.0% following a decline of a similar magnitude in 2009. Final domestic demand advanced 3.5% on the strength of business investment.
Alberta's real GDP rebounded 3.3% in 2010 after falling in 2009. Personal spending on goods and services as well as investment on residential housing, both advanced, contributing to the economic expansion.
In British Columbia, real GDP advanced 3.0%. The main contributor was a 3.8% increase in consumer spending, the largest among the provinces.
Output in the Yukon increased 3.7%. Growth in consumer spending and business investment was well above the national average, and were more than enough to compensate for a decline in exports.
In the Northwest Territories, real GDP increased 1.1%. The main contributor was a 16% increase in business investment. Consumer spending increased 1.4%, while exports were up 2.7%.
In Nunavut, real GDP advanced 11%. Exports increased substantially as a result of a new mine that began production in 2010.
Resource-based economies represent larger share of national income
The size of the resource-based economies of Alberta, Saskatchewan and Newfoundland and Labrador has been increasing relative to the central Canadian economies over the last decade.
In 2000, Alberta, Saskatchewan and Newfoundland and Labrador combined to account for 18% of domestic incomes while a combined Ontario and Quebec accounted for 62%. By 2010, the resource-based economies had increased their share to 22%. Ontario and Quebec's combined share had fallen to 57%.