The regional picture

Much of Atlantic Canada enjoyed robust growth in output in 2002. Newfoundland and Labrador led with growth in real GDP reaching 13.4%, double the rate of any year in the past two decades and the highest growth by far in the country. Most of the growth can be attributed to oil from offshore fields—the Terra Nova oil field began production early in the year. In Prince Edward Island, output increased by 5.6%. Agricultural production was the largest contributor to its growth. Economic activity in Nova Scotia increased 3.8% in 2002 partly because the ship-building industry tripled production and the tire industry experienced a jump in production. New Brunswick's economy grew 3.3%, the strongest gain in three years. This was partly due to an increase in sawmill production, which was up 12.0% from 2001. Lumber exports also increased despite US softwood lumber tariffs.

Central Canada also had a relatively good year. Quebec’s economy grew 4.3% in 2002, a substantial improvement over 2001 when it only grew 1.1%. A major contributor to Quebec’s growth was an explosion in housing starts, which grew over 50.0%—more than anywhere else in the country. Growth in Ontario reached 3.9% partly because of an increase in auto production and consumer spending.

Much of Western Canada had a slower year compared to the rest of the country. Manitoba was a relative bright spot in the west where real GDP grew 2.4% in 2002. Significant growth was registered in the residential construction, retail trade and finance industries. Output in Saskatchewan actually fell for the second year in row, dropping 1.4%. Farm production was severely hampered by ongoing drought conditions, insect infestations and late rains. Alberta was not able to escape the effects of the drought either as it influenced key industries causing growth to slow to 1.7%. Lower energy prices were also a contributor to Western Canada’s slow year. British Columbia’s economy grew 1.8% in 2002. Growth in housing and services led the way while resource-based industries faltered.