Real GDP in Canada Increases 0.6% in November — Now Above Pre-Pandemic Level

Statistics Canada (StatsCan) is reporting that real gross domestic product (GDP) increased 0.6% in November, following a 0.8% rise in October. Increases across almost all sectors have contributed to six consecutive months of growth. The increase brings the real GDP to 0.2% above its February 2020 level, prior to the pandemic.

Advance information indicates that real GDP for December was fundamentally unchanged. Widespread increases led by the manufacturing, agriculture, forestry, fishing and hunting, utilities and wholesale trade sectors were offset by declines in the accommodation and food services, mining, quarrying, and oil and gas extraction and retail trade sectors.

This advance information for real GDP by industry indicates a 1.6% uptick in Q4 of 2021 and a rebound of 4.9% in the year following the pandemic-induced decline observed in 2020. Given their preliminary nature, these estimates will be updated on March 1, 2022 with the release of the official GDP data for December and the fourth quarter of 2021.

In November, the construction sector expanded 0.5% — increasing for the third time in four months, as all forms of construction activity increased. Engineering and other construction activities rose 1.0% in November, the largest monthly gain since April. Repair construction was up 0.5%, as both the residential and non-residential segments contributed to the gain. Residential building construction was up 0.2% in November, as growth in home alterations and improvements more than offset declines in all forms of new residential dwellings construction. Non-residential building construction rose 0.5% in November — up for the fifth month in a row — as an increase in institutional construction more than offset declines in industrial and commercial buildings construction.