The natural resources sector in Canada showed a mix of growth and challenges in the fourth quarter of 2024, according to the latest data.
Real GDP for the sector remained unchanged in Q4 2024, holding steady at 0.0% growth. This came after a similar performance in the previous quarter. By contrast, the broader Canadian economy grew by 0.6% in the same period.
While the overall sector remained flat, the energy subsector experienced growth. It posted a 0.2% increase in real GDP, helped by a 1.4% rise in crude oil extraction. However, other subsectors saw declines. Forestry dropped by 1.3%, while hunting, fishing, and water fell by 1.2%. Minerals and mining also decreased slightly by 0.1%.
Exports from the natural resources sector rose by 5.0%, driven largely by energy exports, which increased by 5.7%. Forestry and minerals and mining also showed strong export growth. However, the hunting, fishing, and water subsector saw a drop of 3.6%, limiting the overall export increase.
Imports within the sector grew slightly by 0.5%, a slowdown from the previous quarter. Increases were seen in minerals and mining (+3.5%) and forestry (+1.9%), while the energy subsector experienced a decline of 2.9%.
Natural resource prices rose by 0.7% in Q4, reversing the previous quarter’s decline. Prices for minerals and mining (+5.5%), forestry (+4.2%), and hunting, fishing, and water (+0.2%) increased, while energy prices fell by 1.3%.
The natural resources sector saw a small decrease in jobs, down by 0.3% in the fourth quarter. The energy subsector added jobs (+0.6%), but this was offset by job losses in forestry (-1.2%), minerals and mining (-0.3%), and hunting, fishing, and water (-1.8%).
Despite the mixed performance in real GDP, the nominal GDP of the sector rose by 0.7% in Q4 2024, reaching $344 billion. This growth was driven by higher prices in natural resources, and the sector now represents 11.7% of the Canadian economy.
In 2023, the natural resources sector faced a slight decline of 0.2% in real GDP. However, certain provinces saw growth, with Alberta (+1.7%), Saskatchewan (+2.2%), and New Brunswick (+4.0%) posting strong results. Overall, the sector added 17,000 jobs in 2023, with significant gains in energy (+16,400 jobs). However, forestry lost 4,600 jobs.
Alberta led job gains with 8,700 new positions, while Quebec saw an increase of 3,700 jobs.