News Releases
Government Home Search Sitemap Contact Us  


July 28, 1999
(Finance)


Finance Minister comments on latest investment intention figures

Finance Minister Paul Dicks said today that he is pleased to see the results of Statistics Canada's latest investment intentions survey which shows that Newfoundland and Labrador will lead the country in capital spending growth in 1999. In fact, this province's growth rate of 29.2 per cent is more than quadruple the national rate of 6.8 per cent.

According to the figures released this morning, investment in the province is expected to increase by 29.2 per cent over 1998, a considerable upward revision from an earlier survey which also showed strong spending plans for 1999 with 18.9 per cent growth in investment. In total, capital spending is expected to exceed $3.5 billion, an increase of almost $800 million over 1998.

"The oil and gas industry is playing a significant role in higher investment spending," noted Minister Dicks. "Hibernia, Terra Nova and more exploration activity are helping push this province out in front when it comes to economic growth."

In addition to investment, many other economic indicators are showing positive trends this year. Retail sales and manufacturing shipments during the first five months are up 6.3 and 4.1 per cent respectively. The number of new motor vehicle sales increased by 10.2 per cent. Hibernia oil production is up 125 per cent to the end of June, while housing starts are up 5.3 per cent. In addition, the fishery is experiencing another good year.

"Our economy is growing and this translates into more jobs," said Minister Dicks. "Employment means more income and a willingness to spend. This is evident in the growth in retail sales."

Employment statistics released by Statistics Canada earlier this month showed a year-to-date gain of 10,000 jobs compared with last year, an increase of 5.3 per cent. Full-time jobs, where earnings are higher, accounted for the gain while the number of part-time jobs declined. Average weekly earnings were 3.4 per cent in the first five months.

"In the budget we projected real economic growth of five per cent in 1999," said Minister Dicks. "These latest numbers reinforce our strong growth expectations."

Media contact: Paula Dyke, Communications, (709) 729-0329.

1999 07 28                        4:50 p.m.


SearchHomeBack to GovernmentContact Us


All material copyright the Government of Newfoundland and Labrador. No unauthorized copying or redeployment permitted. The Government assumes no responsibility for the accuracy of any material deployed on an unauthorized server.
Disclaimer/Copyright/Privacy Statement