RBC Forecasts NL Growth to Outpace Other Provinces in 2013

In its June 2013 Provincial Outlook, RBC Economics is forecasting economic growth in Newfoundland and Labrador in 2013 “to outpace all other provinces by a long shot” and predicts that the province will be one of only four to have economic growth at a faster rate than the national average this year.

“Yet another independent source is forecasting our province to lead the country this year, with projected GDP growth of six per cent,” said the Honourable Jerome Kennedy, Minister of Finance and President of Treasury Board. “In addition to a strong performance expected in oil and gas this year, the mining sector is expected to contribute to the province’s solid economic performance.”

The report states that an anticipated bounce back in private sector hiring throughout the remainder of the year is expected to provide an offset to losses in public sector employment and that the renewed momentum in employment in the province should result in a lower unemployment rate and encourage households to boost their spending on goods and services.

“We are encouraged by the continued growth of the private sector, which is leading to new employment opportunities,” said Minister Kennedy. “We will continue to encourage and support private sector investment to stimulate further growth in our province by maintaining a competitive tax environment and supporting local companies. Through these tax reductions, our government has put over $500 million annually back into the pockets of Newfoundlanders and Labradorians.”

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Media contact:
Tansy Mundon
Director of Communications
Department of Finance
709-729-6830, 693-1865
tansymundon@gov.nl.ca 

2013 06 21             10:00 a.m.