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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