N.L. to enjoy fastest-growing economy thanks to oil
Ontario can expect growth of 1.9 per cent next year, report says
A dramatic economic turnaround is being predicted for Newfoundland and Labrador next year, according to a new report by a national economic think tank.
The Conference Board of Canada says the province is expected to lead the country in economic growth, thanks to offshore oil royalties.
Just a year after having the weakest economic outlook in 2018, the province’s real gross domestic product is expected to grow by 5.2 per cent in 2019.
The provincial outlook report cited offshore oil activity and future developments like the Bay du Nord development project, expected to start construction in 2020, as “cause for optimism in the future.”
Significant wage increases aren’t expected until 2020 but employment numbers in the province should increase next year on the strength of the expanding offshore oil industry.
Prince Edward Island and British Columbia are also expected to see strong growth of 2.7 per cent next year, according to the report, with P.E.I. benefiting from steady immigration and a booming tourism industry.
In B.C., the recently announced Kitimat terminal for LNG Canada’s liquefied natural gas project is expected to help boost economic growth.
Alberta’s domestic economy has picked up and GDP is set to grow 2.2 per cent in 2019, the report said, but uncertainty in the province’s own oil sector around prices, transportation and mandated production cuts could result in lower-than-projected growth.
Other provinces are expected to see slower economic growth of below two per cent in 2019, with Nova Scotia and New Brunswick forecasted to see growth of one per cent and 1.3 per cent, respectively. Both provinces are facing slower growth as populations age and baby boomers retire.
Ontario’s economy is slowing, but is predicted to grow by 1.9 per cent, according to the report.
In Quebec, growth is expected to slow to 1.8 per cent as more moderate job creation and increasing interest rates hold back consumer demand.