Thursday, July 12, 2018 - 9:15 AM

Economic Outlook 2018

Economic Outlook 2018 reports that economic growth in the St. John’s Census Metropolitan Area (CMA) is expected to be relatively unchanged from 2017 with real gross domestic product (GDP) expected to increase by 0.7 per cent, largely due to oil production gains.

“Household income and retail trade are expected to grow slightly throughout 2018,” said Mayor Danny Breen. “However, we do see the economic slowdown being reflected in the labour market data as employment is expected to decline 1.3 per cent in line with decreasing major project investment.”

Housing starts throughout 2018 are expected to rise slightly to 765 units. Retail trade is expected to increase somewhat, growing by 0.4 per cent to reach just over $4 billion. The unemployment rate is expected to decrease by 0.5 percentage points, since labour force declines are expected to be larger than that of employment.

“This report gives us a better sense of how the local economy will perform throughout 2018,” says Deputy Mayor Sheilagh O’Leary, Council Lead for Economic Development, Tourism & Culture. “Since the downturn in the economy homebuyers in St. John’s are choosing lower priced homes and shifting from traditional single-detached houses to more affordable row and semi-detached homes.”

The St. John’s CMA population should continue to benefit from historically high levels of international migration. The population of the St. John’s CMA is expected to continue to grow in 2018 to 220,500 persons, an increase of 0.6 per cent compared to 2017.

This report also discusses the residential real estate market in the St. John’s CMA and the changing composition of the new home market, from larger single-detached homes to more affordable semi-detached and row houses.
 
Note: The St. John’s Census Metropolitan Area (CMA) is a Statistics Canada geographically defined area including St. John’s and neighbouring communities. Data prepared by Government of Newfoundland and Labrador, Department of Finance (Economic Research and Analysis Division) and the City of St. John's Department of Community Services (Economic Development, Culture and Partnerships Division), July 2018.

Economic Development, Culture and Partnerships Division provides a variety of economic and statistical information, including an Economic Review/Outlook twice a year in addition to a monthly Economic Update. These reports and additional data can be found in the publications section at stjohns.ca.  
 
Media Contact:
Kelly Maguire
Media Relations
City of St. John's
709-576-8491
kmaguire@stjohns.ca