Nunavut led Canada in economic growth in 2018

Nunavut’s GDP rose by 10 per cent

Agnico Eagle Mining Ltd. poured its first bar of gold from its Meliadine mine earlier this year. The mine, located near Rankin Inlet, is expected to begin production this spring and to operate for 15 years. The mine’s construction was a big contributor to Nunavut’s recent economic output. (File photo)

By Nunatsiaq News

In 2018, Nunavut’s rate of economic growth came in as the most robust in Canada, according to Statistics Canada.

The gross domestic product, or GDP—the total value of goods produced and services provided during one year—is a primary indicator used to gauge the health of an economy.

Overall, Nunavut is looking good: GDP increased in Canada’s 10 provinces and in all territories, but in Nunavut the growth was more than three times higher than Yukon’s, which showed a 2.8 per cent increase in growth, Statistics Canada said in a May 8 news release.

This breakdown by Statistics Canada shows how Nunavut’s GDP stacks up by the numbers.

In Nunavut, the GDP increased by 10 per cent in 2018 following similar growth in 2017.

Construction, up by 47.5 per cent, and mining, up by 14.9 per cent, contributed the most to the growth.

Engineering construction grew by 55.8 per cent, as work on the development of the Agnico Eagle Mining Ltd.’s Meliadine and Amaruq gold mines continued.

Non-residential construction rose 52.9 per cent, partly due to the building of Nunavut Arctic College’s new campus in Iqaluit, the naval re-fueling station at Nanisivik and a few new schools.

Iron ore mining, up by 29.8 per cent, was the main contributor to the expansion of the mining sector, with iron ore-carrying vessels making a record 71 trips during the summer and fall shipping seasons, StatCan said.

Gold and silver ore mining increased by 3.5 per cent.

Other growth areas included:

• Services-producing industries, up by 1.5 per cent.

• Public sector services, up by 2.9 per cent.

• Transportation and warehousing up by 4.7 per cent as higher construction and mining activity contributed to higher output in air transportation—to move workers in and out of work sites—and to higher output in truck transportation.

• Retail trade was up 0.8 per cent, although wholesale trade fell by 15.9 cent.

That drop is attributable to a 23.8 per cent drop in the wholesaling of machinery, equipment and supplies following two consecutive years of strong growth, StatCan said.

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(7) Comments:

  1. Posted by Yea Right Buddy on

    That the numbers are able to swing up as much as this is not necessarily an indicator of a strong economy, as much as small and a limited one. Still, this isn’t bad news, but it’s not nearly as indicative of the economic health of Nunavut as this piece might have you think. Only a journalist(s) with a superficial understanding of economics could label this as the stuff of a “robust” economy.

    • Posted by Israel MacArthur on

      Absolutely, you nailed it.

    • Posted by Putuguk on

      Actually it is not the reporter interpreting our GDP growth as a sign of a good economy. Its Statistics Canada. I agree. Nunavut’s economy has never been stronger. Whether or not that means anything to the thousands of adult Inuit who are not participating in the economy is another matter. The glass is half full!

      • Posted by Gobble Gobble on

        Statistics Canada is not interpreting the GDP growth as anything, they are just reporting the statistics.

        And although the GDP growth is a good thing, GDP growth itself does not infer a strong economy. Some countries with recently high GDP growth include Bolivia, Nigeria, Botswana, Rwanda, and Cameroon.

        This high growth rate mostly indicates that Nunavut is still a weak economy. Places with well-established economies will likely never see those types of growth rates, because there’s not that much room to grow. Think Alberta or Ontario will ever again report 10% GDP growth? I think not.

  2. Posted by Money Money on

    Nunavut’s Gross Domestic Product increased by 10% last year.
    Did your pay go up by 10%?
    Mine didn’t.
    So who got all the benefit of that 10% growth?

    • Posted by Gobble Gobble on

      That’s not how GDP works.

  3. Posted by Tommy on

    Foriegn investors made it, not Nunavut. Nunavut only made royalties and employment, that’s it. Who do you think benefited from this so called GDP of Nunavut? You, me, or that foriegn investor?

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