A tale of two territorial economies: Generator versus stabilizer – by Derek Neary (NNSL.com – June 27, 2024)

https://www.nnsl.com/

Nunavut’s qamutik hitched to growing mining revenues; NWT accentuates upside of big government

The tale of two territories remains divergent. Nunavut’s 3.4 per cent growth in gross domestic product in 2023 was the strongest in the country, according to initial data from Statistics Canada in May.

The usual players were front and centre. Mining’s share of Nunavut’s GDP continues to expand, reaching a record high 46.7 per cent in 2023, up significantly from 28.5 per cent in 2019. All of that gold and iron extraction — and the related spin offs — represented $1.37 billion for the economy last year, a slight increase from $1.33 billion in 2022.

The next biggest player is public administration — or government — which accounted for 24.9 per cent of GDP. No other industries reached double digits.

In the neighbouring Northwest Territories, the economy was projected to contract last year. Despite the wildfires during the summer of 2023, GDP surprised and grew — albeit by a feeble 0.6 per cent. The territorial government attributed that to “higher than expected investment in the diamond mines and construction of the Yellowknife swimming pool, combined with stronger than projected household and government spending.”

For the rest of this article: https://www.nnsl.com/business/a-tale-of-two-territorial-economies-generator-versus-stabilizer-7368855