Canada’s natural resources sector returned to growth in the third quarter. Real gross domestic product for the sector rose 0.9%, following a 2.3% decline in the second quarter, while economy-wide GDP increased 0.6% after contracting in the previous quarter.
Energy was the main driver of the rebound. Real output in the energy subsector rose 1.5%, supported by a sharp increase in refined petroleum products and a solid gain in crude oil production.
Forestry also returned to growth, with real GDP rising 0.7% after a quarterly decline. In contrast, minerals and mining continued to weaken, down 0.8%, marking another quarter of contraction.
Trade flows improved on the export side. Natural resource export volumes increased 2.2% in the third quarter, reversing a sharp decline in the spring. Forestry exports edged higher on stronger extraction and modest gains in pulp and paper products.
Natural resource import volumes fell 7.8%, driven largely by steep declines in minerals and mining imports. The pullback reversed strong second-quarter growth and reflected lower inflows of primary metallic mineral products. Energy and hunting, fishing and water also contributed to the overall decline, while forestry imports rose slightly.
Prices offered limited support. Natural resource prices edged up 0.4% in the third quarter after a sharp drop in the previous period. Gains in minerals and mining and in hunting, fishing and water were partly offset by lower prices in energy and forestry. Natural gas prices fell sharply, while sawmill and wood product prices also declined, limiting price-driven revenue growth.
Combining higher output and modest price gains, nominal GDP for the natural resources sector rose 1.3% in the quarter. At an annualized rate, the sector generated $339.5 billion in nominal GDP, accounting for 11.1% of the Canadian economy.
Employment, however, did not follow output higher. Jobs in the natural resources sector edged down 0.1%, with losses in forestry and minerals and mining outweighing small gains in energy and hunting, fishing and water. The net decline amounted to several hundred jobs, highlighting ongoing labour market adjustment even as production stabilized.
Downstream activities showed modest improvement. Nominal GDP for secondary and tertiary processing in forestry and mining rose 1.0%.
Overall, the third-quarter data suggest a sector stabilizing rather than accelerating. Energy provided a short-term lift, but persistent weakness in mining, soft prices and declining employment underline the fragility of the recovery as the resource industries head toward.