Canada's natural resources sector rises in Q3 2021, surpassing pre-pandemic levels - StatCan
(Kitco News) - According to Statistics Canada (StatCan), real gross domestic product (GDP) of the natural resources sector rose 2.9% in the third quarter of 2021, surpassing pre-pandemic levels and recovering from the 11.1% drop in the second quarter of 2020.
StatCan said that the rise in the natural resources sector in Canada was stronger than the increase in economy-wide real GDP (+1.3%), reflecting growing demand for natural resource products as many sectors are recovering from the pandemic.
Real GDP of the energy subsector increased 3.4% due to increased extraction of crude oil and oil sands, as well as increased demand from trading partners, whereas
real GDP of the mineral and mining subsector (+3.0%) rose in the third quarter due to increased demand for copper, nickel, lead, zinc and iron ore.
Real GDP of the non-metallic minerals subsector rose 3.5%, following a 2.0% increase in the previous quarter led by increased potash demand as coal and natural gas prices increased input costs for alternate fertilizer production.
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Metallic minerals real GDP increased 6.5% in the third quarter, driven by copper, iron ore, aluminium, aluminium alloys and steel exports.
Importantly, StatCan added that minerals and mining exports from Canada rose 5.8% mainly due to metallic minerals (+32.0%) exports increasing.
"Copper, aluminium, iron and steel exports all increased, fuelled by a rise in global demand,” the authors of the report noted.
Overall, natural resources prices rose 3.4% in the third quarter, led by a 9.8% increase in minerals and mining prices due to a strong increase in coal prices.
StatCan also said that employment in the natural resources sector rose 0.5%, the fifth consecutive quarterly increase, with strongest job recovery recorded in the minerals and mining subsector (+4,400 jobs), followed by energy (+1,000 jobs).