Bright Second Half to the Year: New Brunswick’s Two-Year Outlook
The Conference Board of Canada, 12 pages,
September 7, 2021
This quarterly economic forecast for the province of New Brunswick examines the economic outlook for the province, including gross domestic product (GDP), output by industry, and labour market conditions.
- After declining by 3.8 per cent last year, real GDP in New Brunswick is set to expand by 5.0 per cent in 2021 and 3.1 per cent in 2022.
- The province officially entered the green phase of its recovery plan at the end of July, lifting all public health restrictions. Given the arrival of new variants, cases have already started to increase again, but the province’s vaccination rates are helping to reduce the potential seriousness of these transmissions.
- Certain sectors, including tourism, will find it difficult to return to their pre-pandemic output levels in the near term and will need time to adjust to the new spending patterns of consumers and businesses.
- The 2021–22 budget deficit is expected to be $244.8 million, with total expenses increasing by 3.4 per cent and revenues growing by a more modest 1.2 per cent.
- The shortage of skilled workers in sectors such as health care and construction is a cause for concern and will hurt the province’s economic performance in the medium to long term.
Table of Contents
New Brunswick snapshot
Key sector outlooks