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.
Document Highlights
Newfoundland and Labrador’s real GDP contracted by 3.5 per cent in 2020 but is set to expand by close to 3.0 per cent this year.
Weakness in investment and household spending were the main factors behind the decline in economic activity last year, while exports were a source of strength.
The gain in real GDP this year will be lower than at the national level due to the more modest drop in activity last year.
As has been the case in other provinces, spending on services has been hurt more than spending on durable goods. This year, however, services will expand at a faster pace as the economy gradually opens up.
The province will post one of the highest fiscal deficits in its history this fiscal year due to the pandemic and expenditures required for the Muskrat Falls electricity project.
