The new RBC Economics provincial forecasts are out and the outlook for NB is cloudy. The firm is estimating NB’s economy grew by only 0.5% this year – the only province in Canada to have a less than 1 percent growth rate. From 2010 to 2013, the forecasted GDP growth rate will be lower than all other provinces. Job creation from 2010 to 2013 will be negative (negative in 2010 and 2011, turning slightly positive in 2012/2013.
It’s clear we are in for some tough times ahead as a result of government belt tightening and not much private sector economic growth.
There are some green shoots. The new potash mine is one – I am hearing there may be more on the horizon. Mining is a high value sector with the bonus of significant construction activity on the front end.
NBers need to hunker down and expect a few years of slow growth, little job creation and rising taxes.