Economic Outlook 2015; Marginal Growth Expected

Economic growth in the St. John’s Census Metropolitan Area (CMA) is expected to increase marginally this year; real GDP is forecast to grow by 0.3 per cent in 2015 in comparison to a decline of 0.3 per cent for the province as a whole.
 
“The Economic Outlook 2015 is projecting modest growth for the local economy here in the City,” said Mayor Dennis O’Keefe. “Despite slight declines in some areas, overall we are headed in a positive direction, with real GDP and household income showing modest increases.”
 
The Economic Outlook indicates that GDP in the oil industry is expected to decrease, and declines are also anticipated in the construction sector. These declines are expected to be offset by growth in the service sector as modest income growth continues.
 
“With the current economic conditions, impacted by lower oil prices, we would expect to see some declines,” said Councillor Bruce Tilley Co-Chair of the Economic Development, Tourism and Public Engagement Standing Committee. “I am pleased to see that despite weakening in some areas, major project development and associated investment will continue to generate substantial economic activity this year. The population of the St. John’s CMA is expected to grow to 212,600 in 2015.”
 
This report also examined youth (ages 15-24) employment. The youth unemployment rate in the St. John’s CMA has been steadily trending downward over the last decade, falling to 10.4 per cent in 2014, below the national average of 13.5 per cent.

This outlook report is distributed to a wide audience and is beneficial for both the City and business users in understanding how the local economy is performing.
 
Note: The St. John’s Census Metropolitan Area (CMA) is a Statistics Canada geographically defined area including St. John’s and neighbouring communities. Data prepared by Government of Newfoundland and Labrador, Department of Finance (Economic Research and Analysis Division) and the City of St. John's (Office of Strategy & Engagement), June 2015.
 
The full report (Economic Outlook 2015) is available online in the publications section at www.stjohns.ca.
 
Media Contact:
Kelly Maguire
Media Relations
City of St. John's
709-576-8491
kmaguire@stjohns.ca