1998 and Beyond

Economic conditions in the Province were difficult last year and will continue to be so in 1997. The outlook for the future, however, is much improved. Provincial output is expected to record significant growth for a number of years, fuelled primarily by growth in exports and investment. The development of Terra Nova and Voisey's Bay will contribute substantially to investment over the short-term and the beginning of oil production in the Province will be a tremendous boost to exports. Furthermore, the commencement of Voisey's Bay operations in 1999/2000 will provide a further impetus to export growth. In addition, the fishing industry should benefit from ongoing development efforts and fish stock recovery.

The improved economic environment will foster employment and personal income growth and subsequently consumption should increase. Governments should achieve their goals of restoring fiscal health, thus returning some stability to this significant component of the economy. Overall, the Newfoundland economy is expected to record strong growth in the near term (1998 - 2000).

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