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.
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.
|Chained GDP Growth (%)||Nominal 2020 GDP|
|(Chained $ 2012)|
|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|
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|
|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|
|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|
|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|
|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 $)||40,104||41,023||40,920||41,736||40,024|
|Change in Real GDP Per Capita (%)||0.5||2.3||-0.3||2.0||-4.1|
|Nominal GDP Per Capita ($)||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.
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*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.