NS and NL may fare well ; growth forecasts lower for majority of provinces: RBC Economics

The 2013 Provincial outlook released March 19th by RBC Economics states that natural resource-intensive provinces will continue to lead growth in 2013. The Nova Scotia, Newfoundland and Labrador provinces may rebound and shine during the year.

TORONTO (Scrap Monster) : The 2013 Provincial outlook released March 19th by RBC Economics states that natural resource-intensive provinces will continue to lead growth in 2013. The Nova Scotia, Newfoundland and Labrador provinces may rebound and shine during the year.

The national average growth forecast for 2013 is set at 1.8%. The Newfoundland and Labrador emerged winner with a growth forecast of 5.1%. The Prairie Provinces continue to fare well, with growth rates of 3.0% in Alberta, 2.9% in Saskatchewan, and 2.7% in Manitoba. Nova Scotia (1.9%) is the only other province above of the national average. All other provinces remained below the national level.

The economic activity is believed to gain momentum in Nova Scotia in 2013. Natural gas production is scheduled to start at Deep Panuke mid-2013. The Sable offshore is expected to reach full production capacity during the year. These may boost the natural gas production substantially and push the provincial GDP growth to 1.9%.  Forestry sector is expected to come out of the pressure which in turn is destined to strengthen the exports of rubber tires and crustaceans.

 A rebound of production at the province’s offshore oil fields is expected to take Newfoundland and Labrador on to the top of the provincial growth rankings in Canada for 2013. The major boost in investments is seen at $8.3 billion Hebron oil offshore project. Investment in the energy sector is expected to accelerate further to an impressive $4.7 billion in 2013, which would be a whopping 83% increase from 2012. With major capital projects on the agenda and a rebound in oil production, Newfoundland and Labrador’s economy will be firing on all cylinders in 2013.