Real gross domestic product grew in five provinces in 2008 led by Saskatchewan, Statistics Canada reported Monday.

Nationally, GDP rose 0.5% in 2008 following a 2.7% increase in 2007, the government agency said.

Economic growth was sluggish during the first half of the year, but contracted during the last five months as foreign demand and commodity prices faltered amid turmoil in global financial markets, StatsCan said. Goods production fell 2.8% in 2008, the first decline since 2001, while services production increased 2.1%.

GDP grew in five provinces and two territories, with Nova Scotia, Saskatchewan and Yukon growing faster in 2008 than in 2007.

Saskatchewan led the provinces with growth of 4.4%. Strong resource prices and increased investment were major contributors, as most sectors of the province’s economy advanced.

In Manitoba, the economy grew by 2.4% after a 3.3% increase in 2007.

In Nova Scotia, GDP advanced 2.0% following a 1.7% increase in 2007, while in Prince Edward Island, GDP grew by 0.9% after a 2.4% increase in 2007.

In Quebec, GDP rose 1% after a 2.6% increase in 2007. Quebec’s economy felt the pinch of weakened export demand for forestry, furniture and textile products.

New Brunswick’s GDP remained unchanged from 2007.

Declining export demand contributed to lower GDP in Newfoundland and Labrador, Ontario, Alberta, British Columbia and Northwest Territories.

GDP in Ontario fell 0.4% in 2008 after a 2.3% increase in 2007. Automobile and auto parts production declined more than 20%.

In Alberta, the 0.2% decline in real GDP followed a 3.1% increase in 2007. Business investment, particularly on residential structures, dropped.

In B.C., GDP fell 0.3%, its first decline since 1982. This followed a 3.0% increase in 2007. The province’s forestry products were hit by falling export demand.

IE