Economic Review 2020
Economic Review 2020 reports that economic performance in the St. John’s Census Metropolitan Area (CMA) decreased by 2.6% in 2020, in comparison, to an estimated decrease of 5.8% for Canada. Excluding the oil and gas production industry, the CMA’s real Gross Domestic Product (GDP) is estimated to have decreased by 7.1%, as many private sector industries experienced losses due to COVID-19 related shutdowns, slowdowns and a reduction in the hours worked.
“Labour and housing starts exhibited considerable weakness and retail trade declined slightly, however growth in household income increased,” says Mayor Breen, Council Lead for Economic Development. “Household income increased by 3.1% in 2020 as Canada Emergency Response Benefit payments and other transfer payments offset the loss in employment income.’
Residential activity in the resale market in St. John’s metro increased significantly. Housing sales surged in the latter half of the year with Canadian Real Estate Association MLS® data indicating that the number of homes sold in the CMA increased by 11.9% in 2020 while average house prices increased by 3.5%.
In 2020, employment in the St. John’s CMA fell by 4.9% (or 5,400 persons), and the labour force declined by 2.7% leading to the unemployment rate increasing by 2.0 percentage points to 9.7%, on par with the national unemployment rate of 9.5%.
Outlook for 2021
“The economy in St. John’s metro is expected to rebound in 2021,” said Mayor Danny Breen.
Although lower oil production and decreased capital investment on major projects are expected to hamper growth, other indicators such as employment, retail sales and housing starts should improve as the economy emerges from the constraints imposed during the pandemic.
Read the full report here.
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 and Project Analysis Division) and the City of St. John’s.
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 Snapshot. These reports and additional data can be found in the publications section at www.stjohns.ca.