Canadian Natural Resources Real GDP Declined in 2022Q4

Statistics Canada (StatCan) reported on Thursday (3-23-23) that real gross domestic product (GDP) of the natural resources sector declined 1.9% in 2022Q4, after increasing 1.5% in 2022Q3. In contrast, the economy-wide real GDP was unchanged in 2022Q4.

When compared with 2021, real GDP of the natural resources sector increased 2.5% in 2022, while the economy-wide GDP rose 3.4% for the entire year. Annual real GDP of the energy subsector increased 4.0%, carrying the natural resources sector, while the forestry and mineral and mining sector lost 1.3% and 0.9%, respectively.

StatsCan is reporting that real GDP of the forestry subsector declined 1.8% in Q4, mostly influenced by primary pulp and paper products falling 2.8%, reflecting an upstream 7.6% reduction in lumber extraction. Forestry prices decreased 3.6% in Q4, led by primary sawmill and wood products declining 9.4%. Higher prices on services, up 5.6%, and primary pulp and paper products, up 2.6%, helped to offset the overall decrease in the sector.