Uncertainty Lingers: Newfoundland and Labrador’s Two-Year Outlook
The Conference Board of Canada, 14 pages,
August 25, 2021
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.
- After contracting by 5.5 per cent in 2020, the Newfoundland and Labrador economy will expand by 4.5 per cent this year and 2.5 per cent in 2022.
- The recovery will be led by household spending, but residents of the province may have to dip into their savings to fund spending, as wage growth will be weak.
- The province’s unemployment rate will remain above the Canada-wide average through 2025.
- Housing starts will be constrained over the next several years due to the province’s rapidly aging population.
- While still at unsustainable levels, the province’s fiscal deficit will at least decline this year, partly thanks to rising world oil prices.
- To bring the province’s debt down to more sustainable levels, the government may have to consider selling assets.
Table of Contents
Newfoundland and Labrador snapshot