Canada’s Gross Domestic Product (GDP) experienced a slight increase of 0.2% in November 2023, breaking a three-month period of relative stagnation, according to Statistics Canada. The growth was modest, with the goods-producing industries leading the way, contributing to the highest growth rate since January 2023.
Goods-producing industries recorded a growth of 0.6%, surpassing their services-producing counterparts, which saw a more subdued 0.1% increase. The growth was observed in 13 out of 20 industrial sectors, indicating a varied performance across the Canadian economy.
The manufacturing sector demonstrated strength with a 0.9% increase in November. Non-durable goods manufacturing, particularly chemical manufacturing, played a significant role in this upswing. However, the sector faced challenges, as food manufacturing experienced a contraction, mainly due to a decline in the seafood product preparation and packaging industry.
Wholesale trade rebounded by 0.7% in November, with personal and household goods wholesaling leading the growth. Transportation and warehousing also recovered, expanding by 0.8%, driven by rail transportation and a rebound in water and truck transportation following the St. Lawrence seaway strike.
The public sector encountered difficulties, with the educational services sector declining by 0.3%—its first decrease since June 2023. Strikes in Quebec, particularly in elementary and secondary schools, contributed to this contraction. On the contrary, health care and social assistance managed a modest growth of 0.2%, despite strikes affecting some healthcare workers.
The information and cultural services sector grew by 0.5% in November, marking the end of five consecutive monthly declines. This growth was driven by publishing industries and motion picture and sound recording industries, benefiting from the resolution of the strike by the Screen Actors Guild – American Federation of Television and Radio Artists.
Mining, quarrying, and oil and gas extraction showed resilience with a 0.3% growth in November. Notably, oil and gas extraction experienced a surge of 1.5%, driven by a rebound in oil sands extraction. However, challenges persisted in metal ore mining, particularly copper, nickel, lead, and zinc mining.
The advance estimate for real GDP by industry for December 2023 suggests a further 0.3% increase, with contributions from manufacturing, real estate and rental and leasing, and mining, quarrying, and oil and gas extraction. However, decreases were observed in transportation and warehousing, construction, and educational services. Official figures, to be released on February 29, 2024, will provide a more comprehensive view of the Canadian economy’s performance in the final quarter of 2023 and the year as a whole.