Whitehorse Daily Star

No area performed more poorly than Yukon

The Yukon had the worst economic performance of any province or territory in 2013, according to recent figures from Statistics Canada.

By Christopher Reynolds on November 7, 2014

The Yukon had the worst economic performance of any province or territory in 2013, according to recent figures from Statistics Canada.

The gross domestic product (GDP) declined by nearly a full percentage point, resting in the range of $2.3 billion.

New Brunswick was the only other jurisdiction to see contraction, with the GDP falling roughly half as far in percentage points as the territory’s.

Liberal Leader Sandy Silver was quick to call out the government on the new numbers this week. He noted the disparity between them and the rosier predictions trumpeted by the Yukon Party last year.

“Just over a year ago, the minister issued a news release patting the government on the back for its role in seeing the Yukon through yet another year of economic growth,” Silver told the legislature Thursday.

“There’s only one problem with the minister’s self-congratulations — he was incorrect, and the final numbers weren’t yet in.”

Economic Development Minister Currie Dixon replied that the StatsCan figures said “what many Yukoners already knew: 2013 was a difficult year for Yukon’s economy.

“We recognize that.”

Dixon cited the $1.3-billion 2014-15 territorial budget — the largest ever, as were the five budgets before it — and predicted a rebound in residential construction for 2014.

The GDP contraction marked an end to nine consecutive years of economic growth under Yukon Party stewardship.

“This is despite a billion-dollar budget, mostly from the feds, which this government likes to boast about,” Silver said.

Last fall, the government projected a GDP boost in 2014 of 8.8 per cent.

That optimism was questioned at the time by Rick Karp, president of the Whitehorse Chamber of Commerce, as well as the opposition parties.

The sunny forecast was scaled back to 1.8 per cent earlier this year.

Dixon responded: “The economic forecasts that are conducted by the Department of Economic Development are not influenced by me, they’re not done by me and they’re not a result of any sort of political direction.

“They are done by the economists in the department who work as best they can with the data that they have available,” he said.

Silver took a jab at the government’s effectiveness in an area dear to its heart, the private sector, where jobs dropped by about 300 over the past two years, he said.

The public sector, meanwhile, put on an extra 1,200 jobs, Silver said.

Dixon disputed Silver’s notion the private sector had declined.

“If he’s concerned with the growth of the public sector, perhaps he can give us a list of the jobs that he would like to see cut, and we can let those employees know that the Liberal party doesn’t value their contributions to our economy,” he retorted.

George Marchewa, the “senior econometric analyst” at Economic Development, said today the “downward revision to the GDP is normal given the slowdown” last year.

“Most of that is driven by the slowdown in the construction industry, both on the residential and non-residential side,” he told the Star.

Marchewa noted major projects like the F.H. Collins Secondary School construction, with a budget well over $30 million, along with the new Alexander Street seniors’ facility and Yukon Energy’s backup LNG generators will likely push construction numbers back up for 2014.

Mineral exploration was down significantly in 2013, he noted.

Marchewa said there’s basically no production from the Kotaneelee natural gas field field in southeast Yukon.

Mining output increased in 2013, despite the suspension of activity at the Alexco Resource Corp.’s Bellekeno Mine.

“And as new information becomes available and projects change, we adjust our predictions,” Marchewa said.

Comments (11)

Up 95 Down 96

Rorex on Nov 13, 2014 at 12:20 pm

People need to understand that one year of negative growth is nothing considering our track record.
2007 YT GDP growth 4% Canada 1%
2008 YT GDP growth 5% Canada -3%
2009 YT GDP growth 9% Canada 3%
2010 YT GDP growth 7% Canada 3%

Sufficed to say the Yukon has been out pacing the rest of Canada for about a decade. In fact I would attribute the Yukon's temporary slump in economic growth to two things; first the down side of a housing bubble (thanks to the city not YTG, we all appreciate you going from no lots available to flooding the market) and secondly a very low unemployment rate causing the economy to run near capacity leaving no room for growth. To be clear we have the lowest unemployment rates in Canada, less than half the national average. We also have the 4th highest GDP per Capita and the 3rd highest average annual income....the list goes on. So for all those people making comments about being ready to leave! Lol, good luck if you can't make it here you can't make it anywhere.

I can't stress enough the implications of starving a market of lots and thereby driving up housing costs due to lack of supply only to flood the market with lots obviously causing supply to outpace demand. This means essentially anyone who bought a house in the three years before whistle bend lost a large chunk of equity. This undoubtedly caused lots of people to dump money on their mortgage rather then into the economy. Way to go City of Whitehorse.

Up 91 Down 91

Wilf Carter on Nov 12, 2014 at 7:33 pm

Look at the news today about how weak the world economy is and pull back says it all. What is our unemployment rate compared to the rest of Canada?

Up 97 Down 90

Wilf Carter on Nov 11, 2014 at 2:57 pm

Ready to leave. I here it from a lot of long time Yukoner's and kids that are taking higher education. Why come back here when all there is, is fighting a lack of direction and no chance of progress because no wants progress. Folks bring belief back into the Yukon not just anger which is evident that it is hurting our image and outlook. Think about others not yourself.

Up 97 Down 93

Josey Wales on Nov 11, 2014 at 10:12 am

We performed the poorest?
Good thing we live in an entitlement era and no longer understand terms like merit eh?
If we were in a era where merit was important we would be hooped! Here one can get a job merely for having "the genes" of Canadian royalty, years spent regurgitating socialist drivel in the halls of academia, or if you have a buddy in a position of power. Your actual accomplishments achieved here mean absolutely nothing.
You may wonder how this happened, this entitlements Vs. merit battle?
Well folks I'm of the "opinion" that it started way back in the 1970's with Justine's daddy creating class/race battles, ramming affirmative action down our throats and CREATING said royalty with the stroke of a pen (CCoR&F) in addition to modifying our constitution for the epic panderfest.
Want more battles against evil merit thoughts?
Then exercise your rights and vote for his son... Justine the high school drama teacher.
In the meantime....let us all enjoy the cash/bling folks elsewhere in Canada provide us via THEIR taxes...whilst we pretend to loathe they and their opinions.

Up 94 Down 92

Wilf Carter on Nov 10, 2014 at 11:16 pm

Understand the fact of a new world and how to be part of it and competent in it and be strong and be successful for people and families of the Yukon or the Yukon dies like the ghost towns around Canada and like other areas in the world. People and families of the Yukon it is your choice! The 1898 gold rush is an example, 40,000 people at one time in Dawson and what has taken place?

Up 113 Down 95

mitch on Nov 9, 2014 at 10:47 pm

June has it right. We are currently governed by very incompetent people and the cost of living just isn't worth it. In all my life here I have never seen so many people ready to leave. And we do need federal assistance but these a**wipes are going to screw it up for everyone. Had they been transparent in their economic development ambitions millions of dollars could have been saved and allocated to improvement of the basics. It costs too much to live and do business here and it shouldn't. It is shameful.

Up 100 Down 100

June Jackson on Nov 9, 2014 at 12:27 pm

I hardly ever address personal comments...I just mosey along and give my opinion, I don't ask anyone to agree with me, but I wish everyone who gave my thoughts a thumbs down would also make an opinion. I have one..you have one..that's good debate.

A personal comment? Mr. Carter.. you sound just like the current sitting government.

Up 97 Down 106

Wilf Carter on Nov 8, 2014 at 5:34 pm

There is a number of reasons for the economic down turn in the Yukon:
1. World economy is concerned because the potential of war!
2. Trillions of dollars not being invested and sitting on the side lines because of a world weak economic outlook!
3. The demand for minerals backing off which is standard with the mineral industry. Prices go up and down!
4. Yukon has not developed its mineral industry yet and needs to get production going!
5. The housing growth was created partly because of lack of serviced land available from 2004 to 2012! Supply and demand issue?
6. With such strong growth in the economy from 2004 to 2012, there was a shortage of labor in the Yukon of all kinds!
7. China not purchasing minerals!
8. World inventories increasing! The system of inventorying minerals has changed to on time demand!
9. Investor not prepared to invest in the resource industry because of uncertain outlook! When the risk meteor as one major investment stated to me a month ago. Exportation risk level is to high now for a lot investments.
10. Statements like the Liberal leader and NDP made about the Yukon economy which they seem to have no understanding of economics, world market, supply and demand!
11. When investors see a stabilizing in governments and where they can do business they will invest! With the Liberal and NDP sending out comments about the Yukon economy that is negative and making comments that investor cannot see a direction of development, investors will not invest. Alberta for years, Sask. and NFL have had strong economies because of strong government leadership in economic development. Study the facts and you will see why they have stronger economies. Because of progressive governments, that are developing their provinces economies and creating jobs, tax revenues. The Yukon does need a whole new economic development structure because it has some senior managers who have no knowledge in Economic Development plus the structure requires changing because it is stuck in 1960's type of development techniques. I have many years in economic development and we have to look at all of our opportunities which no one is doing.
11. Get on with business Yukon and stop all the anti-development noise because it is not helping, just driving investment away.
12. The Yukon does not have direction for economic development or how to make it work. Lots of staff do like Mr. Marchewa. He understands the facts.
13. Most economist will tell you that have to know where you have come from to determine where you are going. None of the politicians do understand that fact!

Up 130 Down 93

L.Szigety on Nov 8, 2014 at 5:26 pm

We don't need an economy...we have the most government jobs per capita, and a robust transfer payment scheme. Let everyone else in Canada support us...I mean that is how it is supposed to work right?

Now where are my entitlements

Up 131 Down 95

Yukoner on Nov 8, 2014 at 9:09 am

Which is exactly what to expect from a resource based economy. If the government wants to take credit for the good times, they should be willing to shoulder the credit for the downturn.

Up 118 Down 103

June Jackson on Nov 7, 2014 at 4:59 pm

All that money and they're still gunning for seniors, for shame. ..1.3 BILLION dollars for government misuse. As for the private sector 'decline'. Of course it would decline..no one is making enough money to spend on anything but the necessities. Even Gov. employee's whose spending habits traditionally carry us through low economic times are trying to keep up with jacked up taxes, mortgages..if you drive through YTG yard you usually see new cars and suvs..not right now. People are cutting back. Personally, I predict that residential building will not rebound, as considering other factors its just too expensive for people to live here.

I wish I could predict that next election we will get a nice minority government.. minority governments are usually so good for the people, while a dictatorship always means nothing good for taxpayers.

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