indicatorThe Twenty-Four

A year of recovery

Canada’s GDP was 0.3% lower in 2021 than it was in 2019 while Alberta’s output was 3.6% lower than it was going into the pandemic

By Rob Roach, ATB Economics 10 November 2022 1 min read

Statistics Canada has released revised estimates of real gross domestic product (GDP)* by province up to 2021. The revised numbers provide a better sense of how the provinces bounced back from the pandemic-induced downturns of 2020.

After a near-recession** in 2019, Alberta’s economic output decreased by 8.0% in 2020 compared to a drop of 5.1% nationally. Quebec lost the second most economic ground of any province at -5.0% while Prince Edward Island lost the least at -1.6%.

Things improved in 2021 with every province except Saskatchewan posting at least some GDP growth. PEI led the way with an increase of 7.9%. Alberta’s economic output grew by 4.8%.

Six provinces came out of 2021 ahead of where they were before the pandemic in 2019. PEI’s real GDP in 2021 was 6.1% higher than it was in 2019 followed by New Brunswick at +3.1% and BC at +3.0%. 

As a country, Canada’s GDP was 0.3% lower in 2021 than it was in 2019 while Alberta’s output was 3.6% lower than it was going into the pandemic.

Saskatchewan has the most catching up to do with its GDP down by 5.6% in 2021 compared to 2019.

*Real GDP is the measure economists use to gauge the inflation-adjusted output of economies over time. It doesn’t tell us everything we need to know, but it is still a very useful way to get an overall sense of how an economy is performing.

**Prior to the revisions released on November 8, Alberta’s real GDP in 2019 was estimated to be 0.1% lower than it was in 2018 (i.e., a recession year). After the revisions, the annual change in output is in positive territory at +0.1%. Either way, it was not a strong year for the provincial economy. 

Answer to the previous trivia question: As of the first nine months of 2022, about 85% of Alberta’s total oil production comes from the oil sands.

Today’s trivia question: What does the “gross” mean in gross domestic product?

Four provinces, including Alberta, did not generate enough GDP in 2021 to catch up to where they were before the pandemic began

Four provinces, including Alberta, did not generate enough GDP in 2021 to catch up to where they were before the pandemic began


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