The Economy 1998

1997 Highlights

• Employment gains were realized despite a contraction in real GDP.

• The unemployment rate fell to 18.8 percent as a result of increased employment.

• Retail sales grew 5.7 percent stimulated by a combination of higher employment, lower sales tax, low interest rates and rising consumer confidence.

• The Harmonized Sales Tax (HST) was instituted April 1 and lowered the combined federal-provincial sales tax rate by nearly five percentage points.

• Capital investment was up significantly with gains realized in several sectors.

• Low birth rates and high out-migration led to a decline in population.

• The fishing industry posted a strong performance due primarily to higher catches of shrimp and crab.

• The first commercial cod fishery since the implementation of moratoria took place.

• The mining industry realized a good year with the value of mineral shipments surpassing the $1 billion mark.
  

• Hibernia began pumping oil, signalling the beginning of a new era for the oil industry in this province.

• The Terra Nova Development Plan received conditional approval from Review Panel.

• Newsprint shipments reached record levels.

• Integrated Poultry Limited, a local consortium of chicken producers, took ownership of Newfoundland Farm Products Corp.

• Tourism industry benefitted tremendously from Cabot 500 celebrations.

• A KPMG study found St. John's to be the most cost-effective place to do business.
  

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