Gross Domestic Product (GDP) by Income and Expenditure

On November 8, 2023 Statistics Canada released preliminary Provincial Gross Domestic Product (GDP) by Income and Expenditure data for 2022 and revisions for 2019, 2020 and 2021.

Real GDP1 at Market Prices (Income and Expenditure Accounts)

Economic activity slowed in Canada in 2022, as Canada’s real gross domestic product (GDP) grew 3.8 per cent, after an increase of 5.3 per cent in 2021. Growth in real GDP was driven by household spending, inventory accumulation and exports. Real GDP rose in nine provinces and in each of the territories, with Newfoundland and Labrador (-1.7 per cent) recording the lone decline. Among the provinces, Saskatchewan (6.0 per cent), Alberta (5.0 per cent) and Ontario (3.9 per cent) had the largest annual increases in GDP.

Prince Edward Island

The PEI GDP at market prices in current dollars was valued at $9.4 billion in 2022. The statistics show that the Prince Edward Island economy expanded by 2.9 per cent in chained 2017 dollars. This was the sixth largest increase among provinces, along with Nova Scotia, also at 2.9 per cent.

By this measure, the revised data shows the PEI economy grew by 4.6 per cent in 2019, revised up from 4.5 per cent, contracted 3.0 per cent in 2020, revised down from -1.6 per cent, and grew by 8.4 per cent in 2021, revised up from 7.9 per cent.

Diagram 1 illustrates provincial economic growth from 2018 to 2022 in chained 2017 dollars.

As Table 1 indicates, the national economy expanded by 3.8 per cent in chained 2017 dollars in 2022, following a 5.3 per cent increase in 2021. Saskatchewan saw the highest growth among provinces and territories in 2022 with an increase of 6.0 per cent, followed by Yukon at 5.9 per cent and Alberta at 5.0 per cent. Real GDP increased in all provinces and territories in 2022, with the exception of Newfoundland and Labrador.

 

TABLE 1 - REAL GDP CHANGE, CANADA, PROVINCES AND TERRITORIES, 2018 - 2022

 

  Real GDP Change (%)
  (Chained $ 2017)
Province/Territory 2018 2019 2020 2021 2022
Newfoundland and Labrador -2.5 4.0 -4.8 1.0 -1.7
Prince Edward Island 1.7 4.6 -3.0 8.4 2.9
Nova Scotia 1.8 3.4 -4.5 5.9 2.9
New Brunswick 1.1 1.3 -3.6 5.3 1.1
Quebec 2.8 2.8 -4.7 6.7 2.5
Ontario 3.3 2.1 -4.5 5.4 3.9
Manitoba 1.9 1.2 -4.1 1.3 3.3
Saskatchewan 1.7 -0.5 -4.3 -0.7 6.0
Alberta 2.0 0.1 -7.8 4.6 5.0
British Columbia 3.5 2.6 -3.1 7.1 3.8
Yukon 2.4 -1.4 1.7 8.5 5.9
Northwest Territories 1.2 -3.9 -9.0 4.4 2.8
Nunavut 4.6 7.8 2.3 9.4 0.1
Canada 2.7 1.9 -5.0 5.3 3.8

Growth in Prince Edward Island was led by household spending, which reflected population growth attributable to immigration and internal migration from other provinces. Household spending increased by 2.9 per cent in 2022, following an 8.4 per cent increase in 2021. The increase was driven mainly by an 8.7 per cent increase in spending on services.

Investment in inventories also contributed significantly to growth, in particular business non-farm inventories, which contributed 4.8 percentage points to GDP growth.

PEI’s exports increased 5.9 per cent in 2022, however this growth was exceeded by growth in imports3 (8.1 per cent), resulting in a negative impact on GDP. PEI had the highest growth in imports among all jurisdictions.

Table 2 shows PEI’s expenditure based real GDP in chained 2017 dollars from 2018 to 2022.

TABLE 2 - REAL GDP, EXPENDITURE BASED (CHAINED 2017 DOLLARS), PRINCE EDWARD ISLAND, 2022

in $ millions (except per capita)        2018 2019 2020 2021 2022
Chained 2017 dollars          
 Final consumption expenditure 6,791 6,973 6,863 7,399 7,624
      Household final consumption expenditure 4,604 4,744 4,577 4,961 5,105
          Goods 2,234 2,273 2,218 2,424 2,350
          Services 2,370 2,472 2,359 2,538 2,760
      Non-profit institutions serving households' final consumption expenditure 91 95 101 107 109
      General governments final consumption expenditure 2,096 2,134 2,182 2,329 2,408
           
 Gross fixed capital formation 1,332 1,471 1,511 1,728 1,678
      Business gross fixed capital formation 1,043 1,149 1,129 1,289 1,245
           Residential structures 502 604 624 715 664
           Non-residential structures, machinery and equipment 472 467 422 483 490
           Intellectual property products 69 78 83 90 94
      Non-profit institutions serving households' gross fixed capital formation 6 8 9 11 10
      General governments gross fixed capital formation 284 314 375 431 426
           
 Investment in inventories 38 56 -49 -110 149
       Of which: business investment in inventories 39 56 -49 -111 152
           Non-farm 49 25 -23 -223 187
           Farm -10 30 -25 98 -27
           
 Exports of goods and services 3,350 3,421 3,219 3,467 3,670
      Exports to other countries 1,583 1,632 1,597 1,645 1,784
      Exports to other provinces 1,766 1,788 1,618 1,821 1,883
           
 Less: imports of goods and services 4,621 4,715 4,562 4,912 5,308
      Imports from other countries 1,655 1,617 1,510 1,701 1,998
      Imports from other provinces 2,966 3,098 3,054 3,214 3,324
           
 Statistical discrepancy 8 6 5 -1 -2
 Gross domestic product at market prices 6,906 7,222 7,003 7,590 7,807
 Final domestic demand 8,123 8,444 8,375 9,130 9,300
           
 Annual Growth in Gross Domestic Product (%) 1.7 4.6 -3.0 8.4 2.9
           
 Gross Domestic Product Per Capita (chained 2017 $) 45,357 46,357 43,991 46,813 46,696
 Change in Real GDP Per Capita (%) 0.0 2.2 -5.1 6.4 -0.3

Table 3 shows contributions to change2 in real GDP for 2022. Final consumption expenditure, the largest component of GDP, contributed 2.9 percentage points. Services added 2.8 percentage points to the increase of the final consumption expenditure component, while general governments final consumption expenditure added 1.0 percentage point. Gross fixed capital formation deducted 0.7 percentage points. An increase in investment in inventories increased GDP growth by 3.1 percentage points in 2022. Exports of goods and services added 2.6 percentage points while imports of goods and services  also increased, deducting 5.1 percentage points from GDP growth, for a total net loss of 2.5 percentage points for international and interprovincial trade.

TABLE 3 - REAL GDP, EXPENDITURE BASED, CONTRIBUTIONS TO PERCENT CHANGE,  PRINCE EDWARD ISLAND, 2022

Gross domestic product (GDP) 2.9 Gross Fixed Capital Formation -0.7
Final consumption expenditure 2.9     Business gross fixed capital formation -0.6
    Durable goods -0.7         Residential structures -0.8
    Semi-durable goods 0.1         Non-residential structures 0.1
    Non-durable goods -0.3         Machinery and equipment 0.0
    Services 2.8         Intellectual property products 0.0
    Non-profit institutions final consumption expenditure 0.0     Non-profit institutions gross fixed capital formation -0.0
    General governments final consumption expenditure 1.0     General governments gross fixed capital formation -0.1
Exports of goods and services 2.6 Investment in inventories 3.1
   Exports to other countries 1.9     Non-farm 4.8
   Exports to other provinces 0.8     Farm -1.7
Deduct: Imports of goods and services 5.1 Statistical discrepancy -0.0
   Imports from other countries 3.7    
   Imports from other provinces 1.5 Final domestic demand 2.2

Nominal GDP

Growth in nominal GDP4 in 2022 far exceeded growth in real GDP in all provinces and territories. The national GDP implicit price index5 rose 7.7 per cent, reflecting widespread price increases in each province and territory.

PEI's GDP implicit price index5 rose 6.3 per cent in 2022, the largest increase since 1993. Consequently, nominal GDP increased 9.3 per cent, following nominal GDP growth of 14.9 per cent in 2021. By comparison, national nominal GDP increased 11.8 per cent, with Saskatchewan recording the largest year-over-year increase in 2022 at 29.2 per cent. Table 4 shows the change in nominal GDP for Canada, the provinces and territories.

TABLE 4 - NOMINAL GDP CHANGE, CANADA, PROVINCES AND TERRITORIES, 2018 - 2022

  Nominal GDP Change (%) Nominal GDP
  (Current dollars) 2022
Province/Territory 2018 2019 2020 2021 2022 $ millions
Newfoundland and Labrador 2.7 3.6 -10.2 18.5 6.8 40,720
Prince Edward Island 2.8 6.5 0.3 14.9 9.3 9,376
Nova Scotia 3.6 4.4 -1.4 10.0 7.1 54,383
New Brunswick 3.7 2.4 -1.8 10.9 7.4 44,501
Quebec 5.0 4.6 -1.8 11.6 8.4 545,594
Ontario 4.3 3.9 -2.1 9.8 9.2 1,048,258
Manitoba 2.9 1.7 -2.2 9.2 8.6 86,531
Saskatchewan 4.3 1.0 -8.0 13.9 29.2 114,412
Alberta 4.2 1.7 -14.4 24.9 22.0 459,288
British Columbia 5.4 3.9 -0.5 15.8 11.0 395,215
Yukon 3.8 2.8 5.4 10.8 9.4 3,930
Northwest Territories 1.8 -0.8 -10.2 15.7 14.9 5,574
Nunavut 4.5 13.1 13.4 16.2 0.6 4,753
Canada 4.4 3.5 -4.0 13.4 11.8   2,813,289

Notes:

1 Real gross domestic product (GDP) is GDP given in constant prices and refers to the volume level of GDP. Constant price estimates of GDP are obtained by expressing values of all goods and services produced in a given year, expressed in terms of a base period.

2 Contributions to percent change are presented as percentage points.

3 Imports are a deduction from GDP. An increase in imports results in a negative contribution to change.

4 Nominal gross domestic product (GDP) is GDP given in current prices, without adjustment for inflation.

5 The GDP implicit price index reflects the overall price of domestically produced goods and services.

 

Source: Statistics Canada.

Table 36-10-0222-01 Gross domestic product, expenditure-based, provincial and territorial, annual (x 1,000,000)

Table 36-10-0223-01 Implicit price indexes, gross domestic product, provincial and territorial

released November 8, 2023.

Related downloads for this release:

Annual GDP By Income and Expenditure report (246 KB)

 

 

 

Published date: 
November 8, 2023
Finance

General Inquiries

Department of Finance
2nd Floor South, Shaw Building
95 Rochford Street
P.O. Box 2000
Charlottetown, PE, C1A 7N8

Phone: (902) 368-4040
Fax: (902) 368-6575

DeptFinance@gov.pe.ca