Canada’s economy grew by 1.6 per cent in 2024, maintaining the same pace as in 2023. While every province posted gains, the picture across the country is mixed.
Statistics Canada’s latest data shows that Ontario, Alberta, and Quebec led the country’s economic performance. Ontario added the most to national GDP growth, followed closely by Alberta, where oil and gas extraction gains boosted output. Quebec also made a solid contribution, driven largely by services.
Together, the Prairie provinces—Alberta, Saskatchewan, and Manitoba—accounted for more than one-third of the national growth, despite representing only about 19 per cent of Canada’s population. British Columbia, the Atlantic provinces, and Nunavut also made smaller but positive contributions.
The three territories told very different stories. Nunavut stood out with a 7.5 per cent increase in GDP, up from 3.8 per cent in 2023. The growth was supported by mining and construction, including work on a new gold mine.
In contrast, Yukon and the Northwest Territories saw their economies shrink. Yukon’s GDP dropped due to the shutdown of the Eagle Gold Mine. In the Northwest Territories, a decline in diamond production and lower output in utilities contributed to a 6.8 per cent fall in goods-producing industries.
Canada’s population grew by 1.8 per cent in 2024—slower than in the two previous years—but this still helped fuel demand in the service sector. Health care, education, and public administration remained key contributors to growth, particularly in Quebec and New Brunswick.
Prince Edward Island recorded the highest growth in services (+2.8%), thanks to strong performance in real estate and health care. Across many provinces, real estate activity bounced back as the Bank of Canada began cutting interest rates mid-year.
However, service sector growth slowed in most regions compared with 2023. Accommodation and food services weakened, and the film industry saw lower activity due to fewer new releases following strikes in the United States.
Output from goods-producing industries fell in six jurisdictions, including Ontario, Quebec, British Columbia, and Yukon. Ontario’s manufacturing sector declined by 4.7 per cent, and residential construction fell for a third straight year. British Columbia saw a steep 5.7 per cent drop in construction, with declines in both residential and engineering projects.
In contrast, construction activity rose in Prince Edward Island, Saskatchewan, the Northwest Territories, and Nunavut. Saskatchewan saw growth tied to a new potash mine, while Nunavut’s gain was driven by a major gold mining project.
Oil and gas extraction boosted GDP in Alberta (+3.7%) and Newfoundland and Labrador (+4.6%), while other mining activity supported gains in Saskatchewan and Nunavut. However, mining was a drag on growth in Nova Scotia, Yukon, and the Northwest Territories.
U.S.-bound exports accounted for 29.2 percent of Alberta’s GDP and 22.5 percent of Saskatchewan’s. Ontario, Newfoundland and Labrador also recorded significant GDP and employment exposure to U.S.-bound exports, particularly in oil, gas, and manufacturing sectors.
Canada’s economy continued to grow in 2024, but the pace and sources of growth varied widely. Service industries provided stability, while goods production and construction proved more volatile. With interest rates coming down and population growth easing, provinces face different challenges as they head into 2025.