Canada’s natural resource sector weakened slightly in the fourth quarter of 2025.
Real GDP in the sector fell 0.2%, reversing a modest increase in the previous quarter due to the decline in forestry, where output dropped 3.2%. Other subsectors showed little movement, with energy, minerals and mining essentially unchanged, and a small increase in hunting, fishing and water.
Export volumes rose 3.0% in the quarter, marking a second consecutive increase with energy and mining, while forestry and hunting, fishing and water exports declined.
Imports fell 2.0%, following a sharper drop in the third quarter. Lower imports in energy point to reduced activity, while small increases in forestry and mining did not offset broader declines.
Nominal GDP in the sector increased 0.4% to an annualized $354 billion, accounting for 11.5% of the economy, reflecting limited overall momentum.
Employment rose 0.2%, with gains in mining and energy offset by declines in forestry and in hunting, fishing and water. Job growth remains uneven across the sector.
Downstream processing activities declined 1.2% in the quarter, indicating continued weakness in value-added production.
Annual data shows mixed regional performance. Nunavut, Newfoundland and Labrador, and Prince Edward Island recorded the strongest gains in 2024, while Yukon, the Northwest Territories and New Brunswick posted the largest declines.
The sector enters 2026 with stable exports but weak output and uneven growth across industries and regions.