Continued Focus on Province’s Long-Term Prosperity

Province Benefits from Strong Economy in 2013

Newfoundland and Labrador continued to benefit from a strong economy in 2013, leading all provinces in Gross Domestic Product (GDP) and capital investment growth. Over the last decade, the province has shown substantial growth in capital investment, employment, average weekly earnings, personal income, disposable income and retail sales.

“This past year we have seen continued economic growth in our province, fueled by record high capital investment in major projects, which has led to increased employment opportunities. This continued economic growth, along with unprecedented reductions in income tax by our government putting over $500 million annually back into the pockets of Newfoundlanders and Labradorians, has resulted in more disposable income for residents. This, in turn, has resulted in an increase in retail sales.”
- The Honourable Tom Marshall, Minister of Finance and President of Treasury Board

From 2003 to 2013, capital investment increased in the province 197.5 per cent, from approximately $3.7 billion to a projected $11 billion in this year. Over 22,000 more people are employed in the province today than a decade ago. Employment is expected to reach record levels this year and the unemployment rate is expected to decline to the lowest rate since 1973. More people are working in the province than ever before.

Average weekly earnings in the province from January to September this year were higher than most provinces, at $946, behind only Alberta and Saskatchewan. From 2003 to 2013, average weekly earnings increased by 48 per cent.

From 2003 to 2013, personal income increased by over 70 per cent, while disposable income increased by 72 per cent. As a result of the increase in income, there has been an increase in retail sales and consumer spending in general. From 2003 to 2013, retail sales grew by 49.5 per cent. Newfoundland and Labrador is second among provinces this year in retail sales growth. Retail sales are up 4.4 per cent to September, driven by new car sales which are on track for posting the highest number ever recorded in the province.

Through sound fiscal management and responsible decisions, the Government of Newfoundland and Labrador is strengthening the business environment, encouraging the development of innovative industries, and building a vibrant economy.

QUICK FACTS

• Newfoundland and Labrador leads the country in GDP and capital investment growth in 2013.
• The province has experienced significant economic growth since 2003. From 2003 to 2013, capital investment increased in the province 197.5 per cent, retail sales grew by 49.5 per cent, personal income increased by over 70 per cent, and disposable income increased by 72 per cent.
• Over 22,000 more people are employed in the province today than a decade ago, and employment is expected to reach record levels in 2013.

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

2013 12 23             3:00 p.m.