The Royal Bank of Canada is predicting a “fairly solid” 3.3 per cent rate of growth for this province’s economy over 2010.
In a news release, the bank said Newfoundland and Labrador experienced the steepest decline in real gross domestic product (GDP) in 2009 but is “regaining positive momentum this year as a recovery in mineral extraction and other sectors appear to be gaining a firm foothold.”
RBC predicts non-residential investment in the province will surge by 30 per cent in 2010 and will likely be a steady source of economic strength through the medium term.
It said mining is bouncing back strongly and improved commodity market conditions provide a significant boost to the provincial government's crude oil royalty revenues.
The other Atlantic province’s are expected to see modest growth in GDP during the current year.