Real gross domestic product (GDP) of the natural resources sector decreased 0.7% in the first quarter of 2024, after an increase of 1.4% in the fourth quarter of 2023. In comparison, economy-wide real GDP rose 0.4% in the first quarter of 2024, benefitting from increased household spending, after remaining flat (0.0%) in the previous quarter, reported Statistics Canada on Monday.
Statistics Canada
The decrease in real GDP in the first quarter was driven by the forestry (-2.5%) and minerals and mining (-1.1%) subsectors. The energy subsector (-0.4%) also fell slightly in the first quarter, after increasing 1.0% in the previous quarter. The decline in forestry was driven by primary sawmill and wood products (-2.5%). In the minerals and mining subsector, increased real GDP of metallic minerals extraction (+1.8%) was largely offset by a decline in primary manufacturing (-2.8%), said the federal agency.
“Despite decreases in real GDP, natural resources’ export volumes increased 1.6% in the first quarter, with increases in minerals and mining (+5.3%) and forestry (+2.7%) offsetting the decrease in energy (-1.1%). Primary metallic mineral products contributed the most to the quarterly growth in export volumes, largely due to shipments of unwrought gold,” said StatsCan.
“Import volumes of the natural resources sector (+1.5%) were up in the first quarter, partially recovering from a decrease of 6.5% in the fourth quarter of 2023. Higher import volumes in the first quarter of 2024 in the energy subsector (+8.9%) were driven by rising imports of refined petroleum products (+6.8%) and crude oil (+4.7%). Import volumes further increased in the first quarter for the forestry (+3.8%) and hunting, fishing and water (+1.2%) subsectors; these gains were enough to offset the decrease in the minerals and mining subsector (-5.3%).
“Prices for natural resources (-0.4%) fell slightly in the first quarter, following the decline of 2.5% in the previous quarter. Prices continued to decrease from the previous quarter for forestry (-1.6%) and energy (-1.3%), with refined petroleum products (-5.0%) contributing the most to the decrease. Prices in the minerals and mining subsector rose 1.7%, with non-metallic mineral products (+2.7%) and metallic minerals (+2.1%) contributing to the increase.”
“The number of jobs in the natural resources sector dropped slightly in the first quarter, decreasing by 0.1%. Decreases in the forestry (-0.7%) and energy (-0.4%) subsectors were the main contributors. These declines were partly offset by increases in hunting, fishing and water (+1.9%) and minerals and mining (+0.3%),” added Statistics Canada.
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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