Provincial Outlook Economic Forecast: Newfoundland and Labrador—June 2020
The Conference Board of Canada, 15 pages,
June 17, 2020
This quarterly economic forecast for the province of Newfoundland and Labrador examines the economic outlook for the province, including gross domestic product (GDP), output by industry and labour market conditions.
- The COVID-19 pandemic and the fall in oil prices will lead to a 4.1 per cent decline in Newfoundland and Labrador’s economy this year.
- Employment is forecast to decline by 2.6 per cent in 2020, marking the fifth time in the last seven years that the number of jobs has fallen. The province’s unemployment rate is expected to rise to an average of 12.3 per cent this year.
- Weak income gains and deep employment losses will hurt consumer confidence in 2020, lowering consumer demand.
- An expected rebound next year will push real GDP up by 5.6 per cent.
- Over the medium term, growth in Newfoundland and Labrador’s economy will be modest, at an annual average of 1.4 per cent.