In 2023, for the second consecutive year, real gross domestic product (GDP) grew in every province in Canada, except Newfoundland and Labrador, albeit at a slower pace compared with a year earlier for most, reported Statistics Canada on Wednesday.
In the territories, production slowed in Yukon and declined in the Northwest Territories, while Nunavut was the sole Canadian jurisdiction where economic growth meaningfully accelerated, with a nation-leading 3.4% increase in 2023, said the federal agency.
“Although record population growth helped spur economic activity, tight monetary policy, persistent inflation and several climate change-related events constrained output growth across Canada in 2023,” said the report.
“Higher output from services-producing industries in every province and territory bolstered overall economic growth during a challenging year for goods-producing industries in most of Canada in 2023.”
Infographic 1 
Real gross domestic product growth, Canada, provinces and territories, 2023
StatsCan said Ontario (contribution of +0.60 percentage points) was the largest contributor to Canada’s economic growth, accounting for almost half of the 1.2% increase in national GDP in 2023. British Columbia (+0.23 percentage points) was the second-largest contributor to national economic growth, surpassing Alberta (+0.22 percentage points) and well ahead of Saskatchewan (+0.06 percentage points) and Quebec (+0.05 percentage points). Newfoundland and Labrador (-0.04 percentage points) was the largest drag on national economic output for the third time in six years.
Infographic 2
Top contributing sectors (increasing or decreasing) to the variation in provincial and territorial gross domestic product, 2023
Shelly Kaushik, Economist with BMO Capital Markets, said all provinces saw growth slow in 2023, as the previous year’s solid pace was supported by the removal of pandemic restrictions.
“Activity was also dampened by aggressive monetary tightening, as well as weather and capacity constraints. Looking ahead, we expect the economy to grow at a similar pace in 2024 as elevated rates continue to weigh,” she said.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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