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.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Natural resource indicators, third quarter 2021