Canada’s natural resources GDP rises 1 percent in Q3

Thursday, 17 January 2019 23:23:20 (GMT+3)   |   San Diego
       

According to Statistics Canada, real gross domestic product (GDP) of the natural resource sector, or the volume of economic activity attributable to natural resources, rose 1.0 percent in the third quarter, following a 1.4 percent increase in the second quarter. By comparison, real GDP for the total economy grew 0.5 percent in the third quarter.

Real GDP in the mineral and mining subsector rose 4.1 percent in the third quarter following a 3.6 percent decline in the second quarter. The primary contributors to this increase were non-metallic minerals (+9.9 percent), which grew on the strength of potash, as well as metallic minerals (+7.6 percent). The increase in metallic minerals coincided with the end of work stoppages at the Carol Lake iron ore mine in Newfoundland and Labrador, which disrupted production throughout most of the second quarter.

Real GDP in the energy subsector grew 0.3 percent, on large gains in GDP for refined petroleum products (+22.8 percent). Several refineries resumed production after a number of shutdowns in the previous quarter. The increase in refined petroleum products was partly offset by declines in crude oil extraction (-1.2 percent) and energy-related services (-2.5 percent).

Natural resource activity totaled $252.3 billion (nominal terms, at annual rates) in the third quarter, accounting for 12.1 percent of Canada's GDP, up from 11.9 percent in the second quarter.

Natural resource prices rose 1.9 percent in the third quarter, with increases in the energy and hunting, fishing and water subsectors offsetting decreases in the mineral and mining and forestry subsectors. The growth in prices in the energy subsector (+3.6 percent) was widespread, with crude oil (+4.0 percent) and total refined petroleum product (+1.7 percent) prices rising from July to September. Declines in mineral and mining prices (-2.5 percent) were concentrated in metallic mineral extraction (-5.4 percent) and primary metallic mineral products (-4.0 percent).

Real natural resource exports grew 2.8 percent in the third quarter, following a 5.3 percent increase in the second quarter. Exports in the mineral and mining subsector were up 4.9 percent, with exports of metallic metals (+37.8 percent) up sharply as iron ore production resumed after recent work stoppages. Energy product exports (+2.8 percent) also rose on higher exports of total refined petroleum products (+14.1 percent).


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