Canadian Real GDP Declines in December

Statistics Canada (StatCan) reported today (2-28-23) that Canadian real gross domestic product (GDP) declined 0.1% in December, following a 0.1% increase in November. Goods-producing industries fell 0.6%, while service-producing industries remained unchanged from the November report.

In December, 12 of 20 industrial sectors reported growth. A decline in mining, quarrying, and oil and gas extraction, along with a decrease in transportation and warehousing, contributed to an overall contraction in activity for the final month of 2022. The impact of unplanned seasonal events partially constrained the production and export of crude oil, while adverse weather hampered the transportation and warehouse sector. On the other hand, momentum continued in the public sector—up for the 11th consecutive month in December, partially offsetting the overall contraction in GDP for the month.

Advance data indicates that real GDP in Canada increased 0.3% in January. Increases in the mining, quarrying, and oil and gas extraction, wholesale trade, professional, scientific and technical services, and transportation and warehousing sectors were slightly offset by decreases in construction and retail trade. Noting the preliminary nature of the data, StatCan said these estimates will be updated based on more complete information on March 31st.