Canadian Real GDP for Natural Resource Sector Increased in Q3 2021 — Forestry Sector Sole Decline
Natural resource indicators, third quarter 2021
Statistics Canada (StatsCan) reported on Friday (1-14-22) that the real gross domestic product (GDP) for the natural resource sector increased 2.9% in Q3 2021. The natural resources sector real GDP has now surpassed pre-pandemic levels, recovering from the -11.1% drop in Q2 of 2020.
The rise in the natural resources sector was stronger than the increase in economy-wide real GDP (+1.3%), reflecting growing demand for natural resource products as many sectors are recovering from the pandemic.
The downside in the real GDP was the forestry subsector, which fell -1.5% in Q3 2021. This was largely due to record-setting heat, drought, and forest fires in British Columbia and northwestern Ontario causing forestry and logging to decline significantly (-8.5%). Sawmill activity (-2.6%) also decreased after demand for products started declining from pandemic highs, as well as facing increased burdens from market tariffs.
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