Conference Board of Canada Projects Province to Lead Country in Economic Growth Over Next Two Years

The Conference Board of Canada is projecting that Newfoundland and Labrador will lead the country in economic growth over the next two years. According to its Provincial Outlook Report, the Conference Board of Canada projects that Newfoundland and Labrador’s economy will grow by an estimated six per cent in 2013, well ahead of the national average of 1.8 per cent, and by 3.4 per cent in 2014. Strong economic growth projections demonstrate continued confidence in the provincial economy.

“It is encouraging that another independent source is projecting continued strong economic growth for our province; BMO also recently noted the strength of our provincial economy,” said the Honourable Jerome Kennedy, Minister of Finance and President of Treasury Board. “This continued strength confirms that the action taken by our government to strengthen the economy is working. We will continue to stimulate further growth in all regions of our province, support new business activity, support our local companies and provide a competitive tax regime.”

According to the report, large scale energy projects and a rebound in oil extraction will boost economic growth in Newfoundland and Labrador. In particular, the development of the Hebron gravity-based structure and the Muskrat Falls hydro project will boost the construction industry. Investment, which is already at an all-time high, is expected to increase by over five per cent in each of the next two years.

The report also indicates that oil production will be up by 12.5 per cent, and private sector investment will continue to hit new all-time highs. The Iron Ore Company of Canada’s production is up more than 10 per cent in the first quarter from the same period last year. Alderon Iron Ore’s Kami project continues to advance toward the construction phase, which is scheduled to start by the end of the year. The Conference Board of Canada projects that strong job creation and wage increases will continue to support consumer demand over the near term.

“Despite uneven economic outlooks for the country, Newfoundland and Labrador is one of only four provinces – the others being Alberta, Saskatchewan and Manitoba – projected to grow faster than the national average this year,” said Minister Kennedy. “Our government remains focused on creating opportunities for the people of our province to continue to support economic growth and to ensure long-term prosperity.”

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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 12                            4:35 p.m.