The value of Canada’s natural resources fell by 33% in 2023, which helped lower inflation, according to Statistics Canada.

After reaching all-time highs of $2.6 trillion in 2022, the value of Canada’s resources — which account for 19% of Canada’s GDP — has fallen to $1.7 trillion in 2023.

“Despite this decline, the 2023 value was the second highest resource wealth recorded since the current data series began in 1961,” says Statistics Canada.

Energy resources such as oil and natural gas accounted for more than 61% of the value of all natural resource assets in 2023, minerals 24% and timber 16%.

Energy prices rose 22.5% in 2022 and fell 4.2% on average in 2023.

Energy totaled $1 trillion in 2023 – down $575 billion from 2022. Alberta crude bitumen totaled $608 billion in 2023, down $248 billion from 2022 .

“Despite this decline, crude bitumen remained Canada’s leading contributor of natural wealth in 2023, accounting for more than a third of the total value of natural resources,” StatsCan says.

Lower energy prices in 2023 helped lower inflation.

The consumer price index was 3.9% on an annual average basis in 2023, after a 40-year high of 6.8% in 2022.

“The deceleration in annual average headline inflation was driven by lower energy prices, which fell by an annual average of 4.2% in 2023, after rising 22.5% in 2022,” StatsCan says.

“The decline in energy prices was led by gasoline prices, which fell 7.6% in 2023 after rising 28.5% in 2022 as crude oil prices rose due to a number of factors, including supply uncertainty as a result of the invasion of Ukraine by Russia. as well as higher global demand as travel increased amid easing of COVID-19 restrictions.”

Natural gas prices fell 4.2% in 2023 after rising 26.9% in 2022.

Regarding minerals and mining, mineral prices remained high in 2023, but were 28% lower than in 2022. Minerals accounted for $406 billion in the value of Canada’s resource assets in 2023.

Potash was the most valuable mineral at 35%, followed by iron (30%), gold (13%) and nickel and copper (12%).

At $267 billion in 2023, the value of timber is down 29% from 2022.

According to BC Stats, the value of lumber exports fell from $11 billion in 2022 to $7.7 billion in 2023, while natural gas exports fell from $7.7 billion to $4.9 billion of dollars. The value of copper concentrate exports remained virtually flat at $3.7 billion in both years.

(email protected)

twitter.com/nbennett_biv