Under this topic you will find information on Gross Domestic Product (GDP) levels and growth in the Canadian Economy (NAICS 11-91). You can use this information to assess the general health of the economy and to identify trends in its growth.
Between 2002 and 2011, GDP for all industries in the Canadian economy increased from $1,068 billion to $1,266 billion. In each year of the period, GDP growth has been positive with the exception of 2009 in which we saw a decline for the Canadian economy. The compound annual growth rate of GDP between 2002 and 2011 measured 2.6%.
Source: Statistics Canada, Gross Domestic Product by Industry, 2002 to 2011.
The annual GDP for 2010, over a ten year period, shows the highest percentage of growth rates. From 2009's global recession, which posted the all time low of -3.0%, the GDP had risen to 3.4%. The numbers depicted for the Canadian economy in 2011, however, show a decline from 3.4% to 2.6%.
The table below shows GDP chained-dollar levels as well as short and long-term GDP growth rates for each sector of the Canadian economy.
|Sector||GDP* (millions of chained 2002 dollars)||CAGR**
*GDP is expressed in chained 2002 dollars in order to maintain accurate growth rates. Chained levels are non-additive, therefore sector values will not add up to the value for the Canadian economy.
**Compound annual growth rate.
***GDP values for these three sectors are combined.
Source: Statistics Canada, Gross Domestic Product by Industry, 2002 to 2011.
|11||Agriculture, Forestry, Fishing and Hunting||23,293||29,093||2.5%||2.1%|
|21||Mining and Oil and Gas Extraction||53,488||57,443||0.8%||4.5%|
|48-49||Transportation and Warehousing||50,066||59,743||2.0%||3.8%|
|51||Information and Cultural Industries||38,229||45,907||2.1%||1.5%|
|52, 53, 55***||Finance and Insurance, Real Estate and Leasing and Management of Companies and Enterprises||202,959||264,270||3.0%||2.6%|
|54||Professional, Scientific, and Technical Services||48,481||61,566||2.7%||2.7%|
|56||Administrative and Support, Waste Management and Remediation Services||24,853||30,752||2.4%||1.4%|
|62||Health Care and Social Assistance||68,142||84,485||2.4%||2.1%|
|71||Arts, Entertainment and Recreation||10,398||11,227||0.9%||-1.2%|
|72||Accommodation and Food Services||25,408||27,341||0.8%||2.7%|
|81||Other Services (except Public Administration)||27,230||33,093||2.2%||2.4%|
The activities of goods-producers account for nearly one third of total value-added of all industries in the Canadian economy. In 2011, only the Manufacturing sector posted a negative CAGR of -1.3%. The Mining and Oil and Gas Extraction saw a decrease from 4.8% in 2010 to 4.5% in 2011.
GDP for the Manufacturing sector had been in decline since 2005. A decrease of 11.3% in 2009 was followed by an increase of 5.7% in 2010. In 2011, however, the goods-producing industries decreased anew to 2.3%.
Another goods-producing sector that saw its GDP increase again in 2011 was the Agriculture, Forestry, Fishing and Hunting sector. In 2010 and 2011 respectively, the sector saw a 0.3% increase from 2009 and currently, a 0.7% increase from 2010.
The Utilities sector recovered from its negative GDP rate of -0.2% in 2010 to 4.4% in 2011. It climbed over 4.0% in one year.
The Construction industry saw a decline from 6.6% in 2010 to 4.1% in 2011. However, the CAGR of the sector increased from 2.9% to 3.2%.
The activities of services-producers account for more than two-thirds of total industry-based GDP in Canada. While the services-producing industries were not immune to the global economic down-turn that began in the latter half of 2009, relatively hardy domestic demand allowed the services-producing segment of the economy to maintain some growth in 2010, while the goods-producing industries also saw growth in 2010. However, in 2011, both industries saw a decline in their GDP growth rates.
The largest increase was registered in the Professional, Scientific, and Technical services sector. It recorded a 1.1% GDP growth rate from 2010 to 2011.
The Health Care and Social Assistance sector saw a slight decrease of 0.2% in its GDP for 2011. Also declining is the Retail Trade sector, which decreased by 2.3%, following its increase of 3.8% in 2010.
The Other Services sector posted an increase in growth of 0.8% from 2010 to 2011, following its 1.6% increase from 2009 to 2010.
The Accommodation and Food Services sector posted another increase in growth of 0.1% from 2010 to 2011. However, GDP also showed a decrease in the Educational Services sector to 1.0% in 2011 from its 2.2% in 2010.
In 2011, output for the Information and Cultural Industries sector increased by 0.8%. Output had increased by 0.7% in 2010.
GDP growth for the Administrative and Support, Waste Management, and Remediation Services sector decreased by 0.2% from 2010 to 2011, following a 1.6% growth from 2009 to 2010. GDP growth for the Arts, Entertainment and Recreation sector in 2011, showed a 2.2% decrease from 2010, resulting in its negative GDP of -1.2%.
The Public Administration sector declined 1.0%, dropping from 2.3% in 2010 to 1.3% in 2011.
The GDP by Industry data in the present section are maintained by Statistics Canada's Canadian System of National Economic Accounts. The data are expressed in basic prices and presented in chained 2002 dollars. The process of chaining removes the effect of changes in price while minimizing distortion over time. In this section data are available for the years 2002-2011.
Readers should be aware that there are other ways of expressing Gross Domestic Product aside from those presented here (e.g. expenditure-based and income-based rather than by industry; at factor cost and market prices rather than at basic prices and in constant dollars as opposed to chained dollars). As a result, caution is recommended when comparing the data presented herein with other published sources.
The Gross Domestic Product (GDP) by Industry data within the present section does not define or examine recessionary periods for the Canadian economy, sectors, subsectors or industries. This type of analysis is possible through examining more precise quarterly and monthly trends. Monthly data are available from the Statistics Canada website (see Gross domestic product at basic prices by industry).
Gross Domestic Product (GDP) by Industry measures the value of output of an industry minus the value of intermediate inputs required in the production process. In this sense, it is an output-based measure of economic activity and is commonly referred to as the total value-added of an industry.
The value-added concept is used to avoid double counting. For instance, GDP in the Retail Bakeries industry would not include the value of the flour used to make a loaf of bread; it would only include the value the Retail Bakeries industry adds by turning the flour into bread (for example, the mixing, leavening, and baking process).
This example of value-added (GDP) can be broadened to illustrate the total value of a loaf of bread. Let us suppose we live in a simple world where the only two inputs needed to make bread are flour and water. And for the moment, let us assume water is free.
So as before, it is the baker who turns the flour into bread. This process is his value-added (GDP). For the baker, flour is an input into the production of bread; thus, the value of the flour is not included in the value-added (GDP) of the baker.
The baker buys his flour from the miller, who produces flour by grinding wheat. So the value-added (GDP) of manufacturing flour is captured by the miller. Since the miller purchases wheat as an input, the value of wheat is not included in the value-added (GDP) of the miller.
Who does the miller buy his wheat from? From the farmer, who harvests the wheat from his land using his blood, sweat, and tears. Then, the value-added (GDP) of wheat, which is ground to produce flour by the miller to make a loaf of bread by the baker, is captured by the farmer.
Since our baker owns a retail bakery and sells his wares directly to market, the total value of the bread would equal the value-added of the farmer plus the value-added of the miller plus the value-added of the baker.
Economic growth is often measured as the percentage increase in GDP, which is adjusted for inflation, from one year over an earlier year. Trend growth rates for an economy, sector or industry are calculated over a series of years. In Canadian Industry Statistics, the compound annual growth rate (CAGR) is frequently used to depict trends in real GDP growth and other economic indicators.
GDP growth is an important economic indicator. It measures the progress or the rate of expansion of the economy's capacity to produce output (goods and services). It is examined as a measure of the short term stability or instability of the economy. GDP growth is also reflective of the future consumption possibilities for a nation and is the main source of improvements to our standard of living over time.
Economic growth occurs from accumulating human capital (knowledge and skills), investing in physical capital (factories, machinery, and equipment) and the implementation of new technologies in the production process.
With benefits to economic growth come costs. For instance, to increase the consumption possibilities for tomorrow, we have to forego some consumption today. To maintain economic growth, more effort has to be placed on the production of technology and capital, in order to produce goods for future consumption, rather than the production of goods for current consumption.
Other costs may occur from sustaining a high rate of economic growth, such as resource and environmental degradation. However, the impact faster economic growth has on our environment and resources are not reflected in the measurements of GDP growth.