Gross Domestic Product (GDP) by Income and Expenditure
Gross Domestic Product (GDP) by Income and Expenditure, 2018
On November 7, 2019 Statistics Canada released preliminary Provincial Gross Domestic Product (GDP) by Income and Expenditure data for 2018 and revisions for 2016 and 2017.
The PEI GDP at market prices in current dollars was valued at $6,994 million in 2018. The statistics show that the Prince Edward Island economy grew by 2.6 per cent in chained 2012 dollars, highest among provinces with British Columbia also at 2.6 per cent. PEI is the only jurisdiction in the country to have continuous GDP growth since 2007. The revised data shows growth of 2.1 per cent in 2016 and 4.4 per cent in 2017, which was the fastest growth since 2002.
As Table 1 indicates, the national economy expanded by 2.0 per cent in chained 2012 dollars in 2018, following a 3.2 per cent increase in 2017. Nunavut saw the highest growth among provinces and territories in 2018 with an increase of 7.6 per cent, followed by Yukon at 3.3 per cent and Prince Edward Island and British Columbia both at 2.6 per cent. The only jurisdiction to see a decline was in Newfoundland and Labrador, where Real GDP fell by 3.5 per cent.
|Chained GDP Growth (%)||Nominal 2018 GDP|
|(Chained $ 2012)|
|Newfoundland and Labrador||-1.2||1.5||0.4||-3.5||33,241|
|Prince Edward Island||1.4||2.1||4.4||2.6||6,994|
PEI’s growth in real GDP was attributable to a 4.6 per cent increase in exports and a 6.8 per cent rise in housing investment, coinciding with an inflow of international immigrants in recent years. The increase was moderated by slower growth in household spending (1.6 per cent), down from 2.4 per cent in 2017, and declines in business investment in non-residential structures (-4.4 per cent) and in machinery and equipment (-3.4 per cent). Growth in imports slowed to 2.2 per cent from 4.5 per cent in 2017. Exports of goods and services from PEI now exceed $3 billion and the trade deficit narrowed in 2018.
Table 2 shows PEI’s expenditure based real GDP in chained 2012 dollars from 2014 to 2018.
|in $ millions (except per capita)||2014||2015||2016||2017||2018|
|Chained 2012 dollars|
|Final consumption expenditure||5,862||5,924||6,046||6,178||6,306|
|Household final consumption expenditure||3,997||4,069||4,167||4,267||4,336|
|Non-profit institutions serving households' final consumption expenditure||74||75||81||80||85|
|General governments final consumption expenditure||1,792||1,783||1,802||1,835||1,889|
|Gross fixed capital formation||940||874||977||1,161||1,183|
|Business gross fixed capital formation||718||662||748||918||934|
|Non-residential structures, machinery and equipment||362||288||348||434||417|
|Intellectual property products||47||43||45||47||49|
|Non-profit institutions serving households' gross fixed capital formation||9||7||6||6||7|
|General governments gross fixed capital formation||213||204||221||234||240|
|Investment in inventories||31||19||-21||60||22|
|Of which: business investment in inventories||32||20||-21||58||22|
|Exports of goods and services||2,665||2,874||2,888||2,931||3,065|
|Exports to other countries||1,163||1,355||1,374||1,360||1,372|
|Exports to other provinces||1,497||1,513||1,508||1,565||1,688|
|Less: imports of goods and services||3,749||3,837||3,922||4,098||4,189|
|Imports from other countries||1,299||1,296||1,298||1,323||1,403|
|Imports from other provinces||2,449||2,538||2,622||2,775||2,782|
|Gross domestic product at market prices||5,690||5,770||5,894||6,154||6,314|
|Final domestic demand||6,803||6,797||7,024||7,344||7,495|
|Annual Growth in Gross Domestic Product (%)||0.1||1.4||2.1||4.4||2.6|
|Gross Domestic Product Per Capita (chained 2012 $)||39,436||39,918||40,104||40,895||41,111|
|Change in Real GDP Per Capita (%)||1.7||1.2||0.5||2.0||0.5|
|Nominal GDP Per Capita ($)||40,601||42,118||43,383||44,623||45,539|
|Change in Nominal GDP Per Capita (%)||1.5||3.7||3.0||2.9||2.1|
Table 3 shows contributions to change in real GDP for 2018. Final consumption expenditure, the largest component of GDP, contributed 2.0 percentage points to the growth of GDP, while gross fixed capital formation contributed 0.4 percentage points. Investment in inventories contributed -0.6 percentage points to the growth of GDP in 2018. An increase of exports of goods and services added 2.2 percentage points. Imports of goods and services also increased, subtracting 1.5 percentage points from GDP growth, for a total net gain of 0.8 percentage points for international and interprovincial trade.
|Gross domestic product (GDP)||2.6||Gross Fixed Capital Formation||0.4|
|Final consumption expenditure||2.0||Business gross fixed capital formation||0.2|
|Durable goods||-0.2||Residential structures||0.5|
|Semi-durable goods||0.0||Non-residential structures||-0.1|
|Non-durable goods||0.4||Machinery and equipment||-0.1|
|Services||0.8||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||0.9||General governments gross fixed capital formation||0.1|
|Exports of goods and services||2.2||Investment in inventories||-0.6|
|Exports to other countries||0.2||Non-farm||-0.6|
|Exports to other provinces||2.0||Farm||0.0|
|Deduct: Imports of goods and services||1.5||Statistical discrepancy||0.0|
|Imports from other countries||1.4|
|Imports from other provinces||0.1||Final domestic demand||2.4|
Diagram 1 illustrates provincial economic growth from 2014 to 2018 in chained 2012 dollars.
This release incorporates revisions to the Provincial and Territorial Economic Accounts for 2016 and 2017 and the addition of estimates for 2018. Estimates of provincial–territorial gross domestic product by industry from 2016 to 2018 were also revised. Both incorporate the 2016 benchmark provincial and territorial supply and use tables, revisions to the national income and expenditure accounts released today, as well as revised source data. This release reflects the integration of non-medical cannabis and historical updates to travel services.
Source: Statistics Canada. Table 36-10-0222-01 Gross domestic product, expenditure-based, provincial and territorial, annual (x 1,000,000), released November 7, 2019
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 Imports are a deduction from GDP. A reduction in imports results in a positive contribution to change.