RBC forecasts moderate economic growth for New Brunswick
TORONTO, October 13, 2006 — New Brunswick's
economy is expected to grow by a modest 2.7 per cent this
year and 2.4 per cent for 2007, according to the latest provincial
economic outlook released today by RBC.
"New Brunswick has experienced a strong economic recovery
from last year thanks to several solid sectors and is expected
to perform closely in line with the national average throughout
2006 and into 2007," said Craig Wright, vice-president
and chief economist, RBC. "The province can thank a healthy
household sector, strong services industries and decent manufacturing
gains for this recovery."
RBC notes that New Brunswick has one of the least inflationary
environments in the country. This has aided consumer purchasing
power, with retail sales projected to show a five per cent
expansion over last year, by the end of 2006. While there
has been a vigorous job market expansion in the province,
the unemployment rate is expected to remain third highest
in the country. In addition, new home construction is up despite
rising interest rates and modestly deteriorating affordability
that will slow housing next year.
According to the report, the reopening of pulp mills at Miramichi
and Nackawic should stabilize manufacturing, with added boosts
expected from big ticket non-residential investment projects
such as an LNG terminal in Saint John, the refurbishment of
Point Lepreau nuclear generating plant, as well as a potential
second nuclear plant, and a possible second major refinery,
in addition to one that is already the country's largest.
For the overall Canadian economy, RBC has revised its 2006
growth forecasts downward with Ontario being sharply downgraded
to last place among the provinces. Alberta and British Columbia
are now in first and second place respectively, bumping Newfoundland
and Labrador to third place for growth in 2006.
The RBC Economics Provincial Outlook assesses the
provinces according to economic growth, employment growth,
unemployment rates, personal income growth, retail sales,
housing starts and the Consumer Price Index.
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For more information contact:
Craig Wright, RBC Financial Group Economics,
(416) 974-7457
Derek Holt, RBC Financial Group Economics,
(416) 974-6192
Beja Rodeck, RBC Media Relations,
(416) 974-5506
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