Capital investment will buffer the challenges of a strong loonie and slowing U.S. demand hitting New Brunswick’s forestry industry, according to a provincial outlook released today by BMO Financial Group.
“Major projects such as the $1.4 billion Point Lepreau nuclear plant upgrade continue to fuel non-residential construction activity,” said Doug Porter, Deputy Chief Economist, BMO Capital Markets. “Longer term, a planned $1.6 billion mine development by Potash Corp. is also encouraging news.”
Highlights of the report include:
GDP growth should dip modestly to 2 per cent this year from an expected 2.3 per cent in 2007 and then rise again to 2.3 per cent for 2009.
The unemployment rate is expected to be 7.8 per cent and 8.1 per cent in 2008 and 2009, respectively, up from a record low of 7.5 per cent last year.
A nagging migration problem has suddenly brightened with recent new inflows hitting a level not seen in more than 20 years.
