Canada’s real gross domestic product (GDP) by industry saw a 1.2 percent increase in 2023, marking the slowest rate of growth since 2016, excluding the contraction seen in 2020, according to Statistics Canada’s report on Thursday.
Despite a strong performance in the first quarter of 2023, various factors such as higher interest rates, inflation, forest fires, drought conditions, and strikes had a dampening effect on the overall economic growth during the year, as stated by the national statistical agency.
The report highlighted that value added in services-producing industries continued to grow throughout 2023, albeit at a slower pace compared to the previous three years. The growth was primarily driven by sectors such as the public sector, transportation and warehousing, and professional, scientific, and technical services, according to Statistics Canada.
On the other hand, goods-producing industries experienced a contraction in 2023, with nearly all sectors within this category showing declines. The exception to this trend was the mining, quarrying, and oil and gas extraction sector, which saw an increase driven by growth in both the oil and gas extraction subsectors as well as the mining subsector.
In its previous report, Statistics Canada had predicted an annual economic growth rate of 1.5 percent, based on initial estimates.
