Gross Domestic Product (GDP) by Income and Expenditure

Gross Domestic Product (GDP) by Income and Expenditure, 2020

On November 9, 2021 Statistics Canada released preliminary Provincial Gross Domestic Product (GDP) by Income and Expenditure data for 2020 and revisions for 2019 and 2018.

 

Overview

 

Economic activity dropped in Canada in 2020, as the impact of the Covid-19 pandemic was widespread across the country and the rest of the world. Restrictions imposed on consumers and businesses impacted every aspect of the national economy. Reductions in exports occurred as major trading partners faced similar restrictions. Over the course of 2020, the scope, duration, and impact of mandatory shutdowns and supply chain disruptions varied by region. Declines in household spending, exports, and business investments in non-residential structures, machinery and equipment, and intellectual property products were seen in most regions. The general downturn was somewhat mitigated by fewer imports and by increases in general government investments and investments in housing.

The PEI GDP at market prices in current dollars was valued at $7,508 million in 2020. The statistics show that the Prince Edward Island economy contracted by 1.7 per cent in chained 2012 dollars. This was the lowest decline among provinces, ahead of Nova Scotia at -2.5 per cent. Prior to the pandemic, PEI was the only jurisdiction in the country to have continuous GDP growth since 2007. The revised data shows growth of 4.7 per cent in 2019 and 1.7 per cent in 2018.

Diagram 1 illustrates provincial economic growth from 2016 to 2020 in chained 2012 dollars.

 

As Table 1 indicates, the national economy contracted by 5.2 per cent in chained 2012 dollars in 2020, following a 1.9 per cent increase in 2019. This was the sharpest decline since 1961 the year data were first recorded. Yukon saw the highest growth among provinces and territories in 2020 with an increase of 5.2 per cent, followed by Nunavut at 2.6 per cent and Prince Edward Island with a 1.7 per cent decline. Real GDP fell in all provinces in 2020.

TABLE 1

  Chained GDP Growth (%) Nominal 2020 GDP
  (Chained $ 2012)
Province/Territory 2017 2018 2019 2020 $ millions
Newfoundland and Labrador 1.5 -2.6 3.3 -5.4 31,580
Prince Edward Island 4.7 1.7 4.7 -1.7 7,508
Nova Scotia 1.8 1.9 3.0 -2.5 46,849
New Brunswick 2.5 1.2 1.3 -3.2 37,555
Quebec 2.9 2.9 2.8 -5.5 449,051
Ontario 2.8 3.4 2.0 -5.1 866,940
Manitoba 3.3 2.0 0.4 -4.6 72,849
Saskatchewan 2.6 1.8 -1.1 -4.9 77,833
Alberta 4.5 2.2 -0.1 -7.9 294,818
British Columbia 3.8 3.6 3.1 -3.4 309,327
Yukon 1.8 2.6 -2.1 5.2 3,182
Northwest Territories 3.4 1.4 -6.2 -10.5 4,322
Nunavut 13.2 4.7 5.0 2.6 4,160
Canada 3.0 2.8 1.9 -5.2 2,206,764

Prince Edward Island led the country in growth in housing investment at 9.9 percent. Housing investment increased across Canada as more people were able to work from home and save more with less travel and less participation in other activities. This, combined with low mortgage rates, boosted new home construction, renovations, and resales in 2020.

Household spending decreased by 3.3 per cent in 2020, following a 2.6 per cent increase in 2019. Border restrictions and other Covid-19 measures slowed exports of goods and services, which fell by 3.4 per cent in 2020, following growth of 4.5 per cent in 2019. Imports of good and services also declined, falling by 5.6 per cent.

Table 2 shows PEI’s expenditure based real GDP in chained 2012 dollars from 2016 to 2020.

in $ millions (except per capita)        2016 2017 2018 2019 2020
Chained 2012 dollars          
 Final consumption expenditure 6,046 6,187 6,337 6,516 6,353
      Household final consumption expenditure 4,167 4,274 4,369 4,484 4,337
          Goods 2,077 2,144 2,166 2,193 2,167
          Services 2,089 2,129 2,201 2,288 2,170
      Non-profit institutions serving households' final consumption expenditure 81 81 85 90 86
      General governments final consumption expenditure 1,802 1,837 1,888 1,946 1,932
           
 Gross fixed capital formation 977 1,193 1,210 1,301 1,343
      Business gross fixed capital formation 748 920 943 1,017 1,021
           Residential structures 356 438 460 554 609
           Non-residential structures, machinery and equipment 348 429 423 405 353
           Intellectual property products 45 54 62 61 62
      Non-profit institutions serving households' gross fixed capital formation 6 6 7 9 9
      General governments gross fixed capital formation 221 264 257 273 310
           
 Investment in inventories -21 21 30 36 -95
       Of which: business investment in inventories -21 19 33 36 -96
           Non-farm -24 25 44 -21 -108
           Farm 3 -5 -9 49 7
           
 Exports of goods and services 2,888 2,998 2,998 3,134 3,028
      Exports to other countries 1,374 1,393 1,415 1,508 1,427
      Exports to other provinces 1,508 1,599 1,577 1,618 1,594
           
 Less: imports of goods and services 3,922 4,155 4,232 4,350 4,108
      Imports from other countries 1,298 1,383 1,433 1,439 1,254
      Imports from other provinces 2,622 2,770 2,796 2,910 2,864
           
 Statistical discrepancy -4.0 -8.0 7 14 3
 Gross domestic product at market prices 5,894 6,170 6,277 6,570 6,457
 Final domestic demand 7,024 7,386 7,554 7,824 7,706
           
 Annual Growth in Gross Domestic Product (%) 2.1 4.7 1.7 4.7 -1.7
           
 Gross Domestic Product Per Capita (chained 2012 $) 40,104 41,023 40,920 41,736 40,024
 Change in Real GDP Per Capita (%) 0.5 2.3 -0.3 2.0 -4.1
           
 Nominal GDP 6,376 6,790 6,983 7,444 7,508
 Nominal GDP Per Capita ($) 43,383 45,146 45,523 47,288 46,538
 Change in Nominal GDP Per Capita (%) 3.0 4.1 0.8 3.9 -1.6

Table 3 shows contributions to change in real GDP for 2020. Final consumption expenditure, the largest component of GDP, reduced GDP growth by 2.4 percentage points. The majority of the decline in final consumption expenditure was in services which subtracted 1.8 percentage points. Gross fixed capital formation contributed 0.6 percentage points. A decline in investment in inventories decreased GDP growth by 1.8 percentage points in 2020. A decrease of exports of goods and services subtracted 1.6 percentage points. Imports of goods and services* also decreased, adding 3.6 percentage points to GDP growth, for a total net gain of 2.0 percentage points for international and interprovincial trade.

TABLE 3 - REAL GDP, EXPENDITURE BASED, CONTRIBUTIONS TO PERCENT CHANGE**,  PRINCE EDWARD ISLAND, 2020

Gross domestic product (GDP) -1.7 Gross Fixed Capital Formation 0.6
Final consumption expenditure -2.4     Business gross fixed capital formation 0.1
    Durable goods -0.1         Residential structures 0.9
    Semi-durable goods -0.1         Non-residential structures 0.0
    Non-durable goods -0.2         Machinery and equipment -0.8
    Services -1.8         Intellectual property products 0.0
    Non-profit institutions final consumption expenditure -0.1     Non-profit institutions gross fixed capital formation 0.0
    General governments final consumption expenditure -0.2     General governments gross fixed capital formation 0.6
Exports of goods and services -1.6 Investment in inventories -1.8
   Exports to other countries -1.3     Non-farm -1.1
   Exports to other provinces -0.4     Farm -0.7
Deduct: Imports of goods and services -3.6 Statistical discrepancy -0.2
   Imports from other countries -2.9    
   Imports from other provinces -0.7 Final domestic demand -1.8

 

Source: Statistics Canada. Table 36-10-0222-01 Gross domestic product, expenditure-based, provincial and territorial, annual (x 1,000,000), released November 9, 2021.

 

Related downloads for this release:

Annual GDP By Income and Expenditure report (246 KB)

 

*Imports are a deduction from GDP. A reduction in imports results in a positive contribution to change.

**Contributions to percent change are presented as percentage points.

 

 

 

Published date: 
November 9, 2021
Finance

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Charlottetown, PE, C1A 7N8

Phone: (902) 368-4040
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