September 10, 1999
(Finance)

Minister pleased with Conference Board of Canada's latest forecast

Finance Minister Paul Dicks said today he is pleased that the Conference Board of Canada's latest forecast, Summer 1999 Provincial Outlook, has predicted the province will maintain economic growth in 2000 for the third consecutive year.

"Newfoundland and Labrador is experiencing strong economic growth. In fact, the Gross Domestic Product growth rate is the highest in the country," the minister commented. "I am pleased to see that yet another institution is confirming what we have known to be true for some time."

According to the Conference Board of Canada, the offshore oil industry is propelling the province's economy to a 5.2 per cent Gross Domestic Product growth rate in 1999. A further 5.1 per cent growth is expected in 2000 as oil continues to be a major contributor to Newfoundland and Labrador's economy.

The oil industry, the fishing and fish processing sectors, and the rise in construction are helping to improve the job outlook for the province. Employment is expected to increase by 4.3 per cent in 1999 and by 1.2 per cent in 2000. The manufacturing sector, tourism industry, wholesale trade and construction sectors are also predicted to perform very well.

The strong employment forecast will increase disposable income by an estimated 4.2 per cent in 1999. "This puts more money in the hands of Newfoundlanders and Labradorians," said Minister Dicks. Rising income will drive an increase in consumer spending which will generate output in the retail sales sector.

Media contact: Lynette Oates, Communications, (709) 729-4023.

1999 09 10                              4:10 p.m.