Growth in Nova Scotia, New Brunswick expected to be limited to about one per cent this year
HALIFAX—An independent think-tank is forecasting limited income and consumer spending growth for much of Atlantic Canada next year, while predicting gains for the region’s exports.
In its annual outlook, the Atlantic Provinces Economic Council says it also expects to see a drop in funding for major projects and restrained government spending as the global economic recovery continues.
The report says Newfoundland and Labrador is expected to benefit from strong wage gains next year, while investments in mining and a boost in oil production raise economic growth by 3.4 per cent.
That would come following an anticipated drop in economic growth by 0.4 per cent this year as capital investments are offset by diminished oil production.
The report says Prince Edward Island’s economy is expected to grow 1.4 cent in 2013—down from a projected 1.6 per cent increase this year—as slowing population growth takes its toll on consumer spending and housing investment.
Growth in Nova Scotia and New Brunswick is expected to be limited to about one per cent this year, but both provinces can expect growth of 1.7 per cent and 1.5 per cent next year, respectively.
The forecast for Nova Scotia takes into account the reopening of the former NewPage Port Hawkesbury paper mill in Cape Breton and natural gas production at the Deep Panuke offshore project, which is not yet online.
The report says the forecast for New Brunswick assumes the Point Lepreau nuclear power generating station will operate next year at full capacity.