According to the Conference Board of Canada, the Atlantic province heads the list in terms of economic growth in Canada this year. This trend will continue in 2014 as well.
After Alberta, Newfoundland and Labrador is expected to lead Canadian provinces in terms of economic growth. Although its GDP fell by 4.8% in 2012, it is expected to increase by 6%, largely recovering from its decline. According to the Provincial Outlook note from the Conference Board of Canada, the Atlantic province will maintain its position in 2014 with growth estimated at 3.4%. The research organization explains this good health by the 12.5% increase in oil production as well as the strong increase in private investment in the province.
Uncertainty on the Prairie provinces
Alberta, Saskatchewan and Manitoba are also expected to experience above average growth (1.8% this year). However these provinces will be more subject to cyclical risks. Doubts about pipeline construction and uncertainty about raw material prices are some of the reasons mentioned in the note.
Duller prospects in Quebec and Ontario
In Quebec and Ontario, growth is not forecast to exceed 1.4%, a growth below the national average. Austerity programs remain underway in both provinces while the governments are seeking to balance their budgets. The Conference Board also points to the slowdown in the housing market and the non-residential construction sector which will constrain business investment. The only positive note is that consumption by Quebec households is expected to begin rising again.