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November 30, 2021CANADIAN ECONOMIC ACCOUNTS Q3 2021 
Canada’s Real Gross Domestic Product (GDP) increased 5.4% (all figures seasonally adjusted at annual rates) in the third quarter of 2021. This followed a decline of 3.2% in Q2, and a gain of 4.9% in Q1 2021. Real GDP was 4.0% higher than for the same quarter of 2020. Compared to pre-pandemic Q4 2019, the Canadian economy was 1.4% smaller in Q3 2021.
Statistics Canada notes that the pick-up in GDP in the third quarter was driven by household spending and exports. As restrictions were further phased out, household consumption increased with higher spending on semi-durable goods and services. Following a decline in the previous quarter, exports increased in Q3 2021, led by crude oil exports.
Household spending increased 17.9% in the third quarter driven by services consumption (+27.8%). Outlays for transport services (+40.3%), recreation and culture services (+26.1%), food, beverages and accommodation services (+29.0%), and personal grooming services (+35.8%) all posted gains in Q3.
Goods consumption increased 7.5% with higher spending on semi-durable and non-durable goods offsetting the decline in durable-goods.
Residential structures declined 31.3% following a 11.3% decline in the previous quarter. Investment on new construction and renovations was down following four consecutive quarters of growth.
Business investment in machinery and equipment declined 0.7% in Q3. Non-residential structures (-1.1%) and intellectual property products (-5.7%) both were down.
Export volumes increased 8.0% with higher shipments of goods (+8.2%) and services (+7.1%). Imports declined 2.3% with a fall in goods imports (-7.5%) and a 26.3% increase in services imports.
Following an increase in the second quarter, inventories declined to $13.3 billion in the third quarter of 2021.
The terms-of-trade (ratio of price of exports to price of imports) declined as higher import prices outpaced the increases in export prices. The overall GDP deflator was up 3.1% on annualized basis.
Nominal GDP increased 8.9% in Q3. Annualized compensation of employees rose 11.9%. The household savings rate declined from 14.0% in Q2 to 11.0% in Q3 2021.
The increase in household disposable income was outpaced by growth in household spending, leading to a decline household net savings. Household savings rate was 11.0% in Q3 2021, the sixth consecutive quarter in double digits.
Source: Statistics Canada Gross domestic product, income and expenditure, second quarter 2020
Statistics Canada. Table 36-10-0103-01 Gross domestic product, income-based, quarterly (x 1,000,000)
Statistics Canada. Table 36-10-0104-01 Gross domestic product, expenditure-based, Canada, quarterly (x 1,000,000)
Statistics Canada. Table 36-10-0111-01 Current and capital accounts - National, Canada, quarterly
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