Weak economic growth forecasted for St. Johns, says Conference Board of Canada

Economic growth is forecasted to slow in Atlantic Canadian cities – including St. John’s – this year.

The Conference Board of Canada issued a news release Wednesday stating the St. John’s economy is expected to grow by 1.9 per cent this year, down slightly from the 2.1 per cent increase last year.

While the mining sector and indirect benefits of rising oil production at the Hebron offshore oil field have a positive influence on the economy, the Conference Board stated that other sectors are struggling.

“Construction output is forecast to contract for the third time in four years in 2018, the result of a stalled housing market and the wind down of some non-residential projects,” the statement read.

“Several services sectors are forecast to post modest declines this year, held back in part by provincial government fiscal austerity measures, a reaction to significant declines in offshore royalty revenues.”

The statement also pointed to a weak local job market, noting employment is on track to fall for the second year in a row with unemployment rates reaching a 12-year high at 8.6 per cent.

St. John’s is not alone – the Conference Board’s Metropolitan Outlook: Summer 2018 report shows weaker economic growth forecasted across the country, with most cities in the report expected to see growth between one and two per cent in 2018.

Among the 16 medium-sized Canadian cities covered in the report, Oshawa will have the fastest growing economy this year with an overall real GDP growth of 2.7 per cent.