Nunavut economic growth rate outpaces the rest of Canada in 2024: Statcan

Nunavut’s economy last year grew nearly twice as much as it did in 2023, but still fell short of the double-digit growth the premier forecasted nearly two years ago.

In September 2023, Premier P.J. Akeeagok told an audience at the Nunavut Trade Show that Nunavut’s economy was expected to grow by 13.6 per cent in 2024.

Statistics Canada data for 2024 show that, in fact, Nunavut’s gross domestic product grew by 7.5 per cent last year, compared to 3.8 per cent in 2023. That was a higher growth rate than in any other province or territory in Canada, but still short of what the premier predicted.

In 2024, Nunavut’s GDP came in at $4.1 billion compared to $3.8 billion in 2023, StatCan said.

Nunavut’s mining sector played a large role in that growth, increasing by 5.3 per cent.

Statistics Canada defines GDP as the value of all the goods and services produced in a jurisdiction over a given period. It’s considered a measure of the size of of that jurisdiction’s economy.

“The growth of Nunavut’s mining industry over the past 15 years has been phenomenal, driving one of the fastest economic growth rates in Canada,” said David Akeeagok, the territory’s minister responsible for community services, which oversees mining, in an email to Nunatsiaq News.

“The 2024 [gross domestic product] growth was primarily driven by the expansion of the mining sector, particularly thanks to increased gold production and prices as well as the construction of the new Back River Mine,” a gold mining district south of Gjoa Haven, operated by B2Gold Corp.

Karen Costello, executive director of the NWT and Nunavut Chamber of Mines, said Nunavummiut should not be surprised by the mining sector’s strong contribution to the territory’s economy.

Preliminary spending estimates released by Natural Resources Canada and Statistics Canada in March showed investments in mining infrastructure for 2024 and 2025 were significant, she said.

In 2024, that spending amounted to $197.9 million, she said, and this year it is projected to be $291.7 million — a 47 per cent increase.

Costello cited a sharp increase in the price of gold as a factor in increased mining revenue. According to TD Precious Metals, gold on Monday sold for C$4,518 an ounce, up from C$3,166 one year ago.

She noted the Government of Nunavut spent heavily on construction, such as housing, but “mining is definitely providing us a significant shot in the arm.”

“The commencement of the Back River project was postponed, thus yielding lower gold production than anticipated, yet still higher than in 2023,” David Akeeagok said in the email to Nunatsiaq News.

“Additionally, the price of iron ore was lower than projected,” he said, explaining the shortfall between the premier’s projection and the actual growth rate.

Even so, “It is a good news story,” said Ian Lee, a business professor at Carleton University in Ottawa.

“So when you hear GDP has gone up by one per cent, two per cent or five per cent, that just means that incomes have gone up by that amount in aggregate,” Lee said.

The territory’s GDP growing by 7.5 per cent means wages across Nunavut went up, Lee said. And rapid growth in the gross domestic product will ultimately lead to a greater presence for Nunavut when it deals with provincial, territorial and federal partners.

“The bigger you are, the more clout you have, the more influence you have,” Lee said.

“It also acts as a magnet to pull in new investment and more workers.”

While growth in the GDP means wages have gone up, is not likely to have a major impact on the price of goods in Nunavut, he said.

Where prices might go up is in labour-intensive industries, such as construction. If the cost of paying contractors increases, ultimately the cost to build a home will rise too.

Statistics Canada’s annual report on GDP levels across the country found Nunavut’s 7.5 per cent growth was by far the largest, with Prince Edward Island seeing the second-largest jump at 3.6 per cent.

All other provinces had modest growth numbers. The Yukon economy contracted by 3.3 per cent and the Northwest Territories’ economy shrank by 1.1 per cent.

Nationally, the country’s GDP grew by 1.6 per cent in 2024. It stood at $2.268 trillion last year compared to $2.232 trillion in 2023.

The Nunavut government said it could not provide specific projections on growth for 2025, noting uncertainty around tariffs.

“However, we anticipate sustained growth in Nunavut’s economy, building on the momentum of sectors like mining and infrastructure,” David Akeeagok said.