Provinces headed for strong growth in 2015

Canada’s provincial economies should improve in the coming year — in particular, in terms of increased job creation and business investment — with resources-rich Alberta and Newfoundland and Labrador expected to reap the biggest benefits.

The Conference Board of Canada, in its fall outlook released Thursday, said strong growth in the United States will also fuel expansion in this country during 2015.

Overall, the Ottawa-based thinktank estimates Canada’s gross domestic product — the broadest measure of economic activity — will pick up pace next year, rising to 2.6 per cent from an expected 2.2 per cent in 2014. “A stronger U.S. economic activity, coupled with a slightly weaker Canadian dollar will keep export activity humming in 2015,” it said.

Alberta and Newfoundland and Labrador will act as bookends to Canada’s economy next year, supported by the energy sector, according to the Conference Board.

In the East, Newfoundland and Labrador will shake off the impact of this year’s big job losses and declines in oil production to post GDP growth of 3.4 per cent in 2015, reversing what is forecast to be a 1.3 per cent contraction in 2014.

“The Terra Nova and North Amethyst (oil) fields are expected to fuel growth next year as they return to normal production,” the board said.