Atlantic Canada's economy set to grow next year: RBC
TORONTO, Dec. 12, 2011 /CNW/ - As the U.S. economy continues to recover, increasing its demand for Canada's exports, the majority of Atlantic Canada will see a greater contribution to growth from the export sector, according to the latest RBC Economics Provincial Outlook report. RBC projects faster rates of expansion in 2012 in two of the four Atlantic Provinces relative to this year, yet the pace will remain generally subdued.
Since the beginning of the recovery, Newfoundland and Labrador has been among the growth leaders in Canada. The province's solid performance in 2011 was mainly the result of a surge in major construction spending, which more than compensated for declines in oil production and mixed performance in the mineral sector. By some estimates, capital expenditures are on pace to rise by a remarkable 49 per cent this year relative to 2010.
"Next year, capital investment growth will moderate and offshore oil production will continue to decline. On the other hand, mining production should see a strong increase," said Craig Wright, senior vice-president and chief economist, RBC. "On net, we expect Newfoundland and Labrador to grow at a healthy rate of 2.8 per cent in 2012."
Read the full article
here.