Offshore oil keeps Newfoundland going
28-01-99 Offshore oil exploration and development will maintain Newfoundland's expansion above 3 % in 1999, with a further healthy gain next year, according to Scotia Economic's latest report.
The outlook is upbeat beyond 2000 with further offshore oil development and planning for the Churchill River hydroelectric power projects to begin construction in 2002.
Hibernia output is slated to double within two years and construction continues on Terra Nova for production by late 2000. As well, a major expansion is already planned for the oil transhipment terminal at Whiffen Head, just opened last year," observed a Senior Economist.
According to the report, the rebuilding of Newfoundland's fishery, based on a range of higher-valued species such as crab and shrimp, is also contributing to provincial income. Investment is ongoing in new multi-species fish processing plants.
Average annual employment from 1998 through 2000 is forecast to rise by almost 8 %, regaining the jobs lost from 1990 to 1997 andhelping to slow out-migration," he added.
Nationally, economic growth is forecast to moderate to about 2 % this year and next as the spreading global slowdown undercuts trade-related gains in Canada and the United States. British Columbia will remain the province most affected by Asia's lingering difficulties. The Prairie provinces will struggle with weak oil and agricultural prices until 2000, although Alberta is still expected to outperform the national average. While Central Canada's strong momentum will be reined in by slowing North American markets, new investment will keep Quebec in forward gear and Ontario's broad-based economy will maintain its growth in the 2-1/2 % range. The Atlantic provinces will continue to be buoyed by offshore energy projects. A synchronised global recovery is expected next year, but Year 2000 adjustments will initially obscure the turnaround.
The provinces face the upcoming period of slower national growth and international volatility with considerably more strength than
a decade ago. They have accomplished substantial fiscal repair as well as considerable industrial diversification.
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