Official data also shows better-than-expected GDP growth in recent years
The resilience of the Canadian economy in the face of tough conditions is revealed in revised GDP data for recent years.
Statistics Canada’s economic accounts for the provinces and territories for 2023 show growth of 1.5% last year, with higher exports and consumer spending on services helping to drive the growth, along with business investment. The previous estimated figure for the year was 1.2%.
Given the Bank of Canada’s aggressive rate hiking during the year, the better-than-expected growth is notable.
But while the figures show a continued rise in compensation for Canadian workers – up 6.5% in 2023 and the third consecutive year of gains – the savings rate among households was weaker at 3.7%, down from 4.2% in the previous year.
The ability to save was impacted by higher total interest rates on mortgage and non-mortgage debt of 42.5% for the year.
Government expenditures were also revised higher for 2023, to 2.2% from 1.6% previously.
Provinces, territories GDP
Looking at GDP growth, the largest provincial gains were in British Columbia (+2.4%), Saskatchewan (+2.3%) and Alberta (+2.3%) while Nunavut posted the largest territorial gain at 3.8%. There was growth for nine provinces and two territories while Newfoundland and Labrador (-2.6%) and the Northwest Territories (-0.5%) recorded declines.
Exports in 2023 were up 5%, far outstripping a 0.3% rise in imports. But while household spending increased by 1.8%, this was a much slower pace than the 5.5% of 2022.
Housing investment remained weak with a decrease of 8.5% for the year, following a 10.5% decline in 2022, but business investment in non-residential structures increased 3.2% in 2023. Business investment also grew for intellectual property products (+4.0%) mostly driven by software, while business investment in machinery and equipment declined 2.7%, following growth in the previous two years.
Overall GDP figures were also revised higher for the previous two years – 4.2% for 2022, beating the previous estimate of 3.8%, and 6% for 2021, up from the 5.3% estimate, driven by a rebound from the pandemic.
