Household spending rose 2.2% in 2024, the same rate of growth as in 2023, led by increased spending on new vehicles, rent, financial services and telecommunication services, according to data Statistics Canada released Thursday.
Nunavut posted the largest increase in household spending (5.1%) followed by Manitoba (3.4%), while Prince Edward Island (+0.1%) recorded the smallest rise.
As Canadians spent more, they also saved more. The household saving rate reached 5% in 2024, more than double the rate recorded in 2023 (2.3%). Income grew at a faster pace than nominal consumption expenditure as inflation eased.
The territories continued to record the highest household saving rates between 18.4% and 30.8%. Quebec (8.3%), Alberta (8.1%) and Prince Edward Island (8%) followed. Households in Nova Scotia continued to be negative net savers in 2024, as their nominal expenditure surpassed disposable income.
In 2024, GDP rose in all provinces and in Nunavut, while Yukon and the Northwest Territories saw declines. Nunavut posted the largest percentage increase (6.9%) in GDP, followed by Prince Edward Island (3.8%), Nova Scotia (3.1%). However, the three largest provinces — Quebec (1.7%), Ontario (1.6%) and British Columbia (1.1%) — all grew at a slower pace than the overall Canadian economy (2%).
International exports rose 0.9% in 2024, drown from 6.2% growth the previous year. Exports of travel services led the growth in 2024, while lower exports of motor vehicles and parts were the main driver of the deceleration in international exports.
Employee compensation rose in every province and territory in 2024, the fourth consecutive year of increases since the Covid pandemic-induced decline in 2020. Compensation grew 5.9% in 2024, led by increases in professional and personal services, health care and social assistance and educational services. Growth was highest in Nunavut (12.2%) and lowest in Alberta (4.9%).