While tech gets all the headlines, Canada’s economy remains reliant on natural resources, says National Bank Financial (NBF).
In a research note, NBF said new data from Statistics Canada showed that natural resources represented their highest share of GDP in a decade. The sector accounted for 12.8% of nominal GDP in 2022, up from just over 9.0% in 2020, its largest share since 2014.
The rising share of GDP came as resource sector output increased across several provinces, led by Alberta and Ontario, which pushed the sector’s output up by 3.1% on a national basis, StatCan reported.
The data confirm “the continued importance of this sector to the Canadian economy,” NBF said.
The firm also noted that Alberta represented 38.2% of the natural resources sector’s contribution to GDP, with 94% of that coming from the energy sector.
Alberta was followed by Ontario in a distant second place at 15.5%. British Columbia and Quebec accounted for 12.7% each, and Saskatchewan accounted for 11.5%, it noted.
While energy led the growth, the mining and forestry sectors also saw output rise, while real GDP from hunting and fishing was down by 1.0%, StatCan said.
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