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OTTAWA — Canada’s natural resources sector returned to growth in the third quarter as higher output in energy and forestry helped lift the sector, even as mining activity remained weak and employment edged lower.
Statistics Canada says real gross domestic product for the natural resources sector rose 0.9 per cent in the third quarter after falling 2.3 per cent in the previous quarter. Economy-wide real GDP increased 0.6 per cent, following a 0.5 per cent decline in the second quarter.
The rebound was led by the energy subsector, where real GDP rose 1.5 per cent. Statistics Canada says higher production of refined petroleum products and crude oil drove the increase, while electricity generation declined 2.2 per cent.
Forestry activity also recovered, with real GDP up 0.7 per cent after a second-quarter drop. Gains were supported by higher forestry extraction and increased output of pulp and paper products.
Mining and minerals continued to contract. Real GDP in the subsector fell 0.8 per cent, reflecting declines in metallic mineral extraction and primary metal manufacturing. Activity in hunting, fishing and water slipped 0.2 per cent.
Natural resource export volumes increased 2.2 per cent in the third quarter, reversing a 5.3 per cent decline earlier in the year. Energy exports rose 5.4 per cent, while forestry exports increased 0.2 per cent. Export volumes declined in minerals and mining, down 3.4 per cent, and in hunting, fishing and water, down 4.8 per cent. Exports of primary metallic mineral products fell 9.4 per cent, marking a third consecutive quarterly decrease.
Import volumes for the natural resources sector dropped 7.8 per cent after rising 7.9 per cent in the second quarter. Statistics Canada says the decline was driven mainly by minerals and mining imports, which fell 12.2 per cent. Forestry imports increased 1.0 per cent, while energy and hunting, fishing and water imports declined.
Prices across the natural resources sector edged up 0.4 per cent in the third quarter after falling 4.0 per cent previously. Prices increased in minerals and mining and in hunting, fishing and water, while prices declined in forestry and energy, weighed down by lower natural gas prices and weaker sawmill and wood product prices.
Nominal GDP for the natural resources sector rose 1.3 per cent in the third quarter. At an annual rate, nominal GDP increased to $339.5 billion, representing 11.1 per cent of Canada’s economy.
Employment in the sector edged down 0.1 per cent, as job losses in forestry and mining were partially offset by small gains in energy and in hunting, fishing and water.
Statistics Canada says downstream processing activities in forestry and in minerals and mining also increased, with nominal GDP for downstream activities rising 1.0 per cent in the third quarter to an estimated $9.5 billion.
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