Drought to blame for 5.7 per cent decrease in agriculture GDP: StatsCan


Statistics Canada (StatsCan) has released its gross domestic product (GDP) by industry numbers for August 2021, and it is no surprise that a lack of precipitation caused a significant drop in the agriculture, forestry, fishing, and hunting sector.

The category dropped 5.7 per cent, following a 5.5 per cent decrease in July.


StatsCan says the record-setting heat and drought conditions in Western Canada have “continued to severely affect production in the sector, contributing to the largest back-to-back monthly contractions since the series started in 1997.”

Animal production and aquaculture saw a decline of 3.5 per cent, which as the agency notes, more than offset the 3.0 per cent gain in July when there was a run in cattle being culled, due to a lack of feed.

On the crop production side of things, excluding cannabis, GDP fell 10.9 per cent in August following a 13.2 per cent drop in July. StatsCan says these activity levels haven’t been seen since early 2003.

Overall, Canada’s real domestic product increased 0.4 per cent in August, which StatsCan says is in part driven by increases in the accommodation and food services, retail trade, and transportation.

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