Economic Outlook 2017

Economic conditions are expected to continue to soften in 2017 according to the Economic Outlook 2017 released today for the St. John’s Census Metropolitan Area (CMA).
 
The unemployment rate is forecasted to climb to 8.1% as a result of declining employment and labour force numbers. For the first time in a number of years, household income is expected to decline, contributing to a decline in retail sales as well. Real GDP is forecasted to decrease by 3.4%. 
 
“While declines are expected in most indicators, the region should continue to benefit from growth in international migration.” says Councillor Dave Lane, Chair of the Economic Development, Tourism and Public Engagement Standing Committee. “Population growth is especially important from a demographics perspective. The City and our community partners are actively involved in programming to welcome newcomers.”  
 
2016 Performance
 
“Major projects continue to generate economic activity in the region, but it is lower than in previous years.” says Mayor Dennis O’Keefe. “This combined with declining housing starts and other factors, meant that 2016 was mixed in terms of economic indicators and demonstrated the moderating of the economy.”

This report also provides commentary on residential and commercial real estate markets. While residential and office vacancy rates have increased in recent years, rental rates have not weakened.

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 the Government of Newfoundland and Labrador (Economic and Project Analysis Division, Department of Finance) and the City of St. John’s (Economic Development, Culture and Partnerships Division, Department of Community Services), July 2017.

The Economic Development, Culture and Partnerships Division provides a variety of economic and statistical information, including an Economic Review/Outlook twice a year in addition to a monthly Economic Update. These reports and additional data can be found 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