Canadian Real GDP, Income, and Expenditures for 2023Q4
Gross domestic product, income and expenditure, fourth quarter 2023
On Thursday, Statistics Canada (StatCan) reported that real gross domestic product (GDP) inched 0.2% higher in 2023Q4, following a 0.1% decline in Q3. In Q4, higher exports and reduced imports helped fuel GDP growth, but this was offset by a modest decline in business investment.
Final domestic demand—composed of expenditures on final consumption and gross fixed capital formation—edged 0.2% lower in Q4, after increasing 0.2% in Q3. On an annual basis, real GDP and final domestic demand rose for the third consecutive year since the pandemic-induced contraction in 2020. However, outside of 2020, real GDP in 2023 increased at its slowest pace since 2016.
In regard to residential construction, StatCan reports that residential construction was down 10.2% on an annual basis, with declines occurring in new construction, renovations, and ownership transfer costs. In nominal terms, housing investment represented 7.7% of GDP in 2023, a significant decline from the peak of nearly 10.0% in 2021.
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