Prince Edward Island and the Yukon were the only Canadian economies to grow last year, bucking the trend of larger provinces such as Ontario, Alberta and B.C.

Steam rises from a stack at a factory in Hamilton in 2007. Ontario's economy shrank by 3.1 per cent in 2009. (Adrian Wyld/Canadian Press)

In a preliminary analysis of previously released data, Statistics Canada said Wednesday that Canada's GDP shrank by 2.9 per cent in 2009, following a 0.6 per cent rise in 2008.

But on a provincial level, the picture is one of regional variety.

Two of the country's four biggest provincial economies (Ontario and Alberta) shrank by more than the national average — by 3.1 and 5.1 per cent, respectively. The two other largest provincial economies, B.C. and Quebec, shrank by 2.3 per cent and one per cent, respectively.

Declining production of automobiles and auto parts were to blame in Ontario, while a drop in manufacturing, in forestry and forest products caused Quebec's decline.

The largest GDP declines for the full year took place in the resource-intensive economies of Newfoundland and Labrador, Saskatchewan and Alberta.

"Commodity-heavy provinces fared worst during the recession," BMO economist Robert Kavcic said Wednesday. "But with commodity prices and global demand rebounding, Western Canada should reclaim its spot atop the provincial leaderboard this year."

Wide variety

The GDP of Newfoundland and Labrador fell 10.2 per cent last year, mostly due to a sharp drop in offshore oil extraction and a strike at the Voisey's Bay nickel mine decimating mining output.

Saskatchewan's economic activity fell by 6.3 per cent last year, after a 4.4 per cent increase in 2008.

The Yukon's relatively small economy had the biggest growth last year, by far, increasing by 1.4 per cent due to mining activity and construction associated with a new mine.

The economy of neighbouring Northwest Territories shrank by 5.9 per cent on a drop in diamond output due to dwindling global demand.

The small economy of Prince Edward Island grew last year by 0.6 per cent, down slightly from a 0.7 per cent advance in 2008, due to increased output in aquaculture and higher lobster landings more than offsetting a decline in agriculture.

In Nova Scotia and New Brunswick, GDP declined by 0.5 per cent and 0.8 per cent, respectively.

In its latest quarterly update, Statistics Canada said the Canadian economy is expanding at a five per cent annual pace.

Kavcic is predicting below-average growth for Central and Atlantic Canada in 2010, with the West again leading with better than three per cent growth.