The Economy 1998

1998 Expectations

• Economic growth is expected to resume, propelled by oil production, development of Terra Nova and gains in fish production.

• Employment should rise as a result of increased economic activity.

• Capital investment is forecast to increase, buoyed by the development of the Terra Nova project and public sector spending.

• Modest gains should be realized in both retail sales and housing investment.

• Out-migration is likely to continue due in part to ongoing adjustments in rural economies and strengthening Canadian labour markets, primarily in Ontario and Alberta.

• The fishing industry is expected to realize another solid year due in large part to higher shrimp landings.

• The value of mineral shipments is expected to rise for the fifth consecutive year.

• Hibernia oil production is forecast to increase over the course of the year.
  

• Development of the Terra Nova project is anticipated to accelerate.

• Oil exploration activity is expected to increase.

• Activity at the former Marystown Shipyard is forecast to rise as a result of the acquisition by Friede Goldman International.

• Newsprint shipments are anticipated to increase moderately in response to firmer market conditions.

• Lumber production is poised to post another record year.

• Negotiations between Newfoundland and Labrador Hydro and Hydro-Quebec on development of power from the Churchill River will commence.

• The tourism sector should experience above average activity due to the "echo effect" from Cabot 500 celebrations and other initiatives.
  

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