City of St. John’s Releases 2025 Economic Review

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The City of St. John’s has released the 2025 Economic Review, its annual report on economic indicators for the St. John’s Census Metropolitan Area (CMA).

“The economy of the St. John’s CMA strengthened in 2025, supported by higher oil production, expanding employment and continued growth in the housing market,” said Mayor Danny Breen. “We are encouraged to see inflation easing and consumer spending remaining solid. While global uncertainty remains, St. John’s continues to build on a stable foundation as we prepare for opportunities ahead in 2026.”

Key Highlights

The economy of the St. John’s CMA grew by 5.0% in 2025, largely due to an increase in offshore oil production.
Excluding oil and gas extraction, real GDP rose by 1.1%, led by service-producing industries.
The St. John’s CMA population increased by 1.3% to 243,478 in 2025. Growth slowed compared to recent years due to lower immigration and natural population decline.
Employment rose by 3.1%, adding 3,800 jobs, primarily in service industries.
The unemployment rate edged up to 7.2% as labour force growth outpaced job gains.
Household income increased by 1.8%, supported by employment and wage gains.
Retail sales grew by 4.3% to more than $6.2 billion, driven by steady incomes, population growth and easing inflation.

Housing starts were strong in 2025 at 1,037 - a 19.1% increase over 2024 — reflecting strong demand and low inventory.
Inflation slowed to 1.3% in 2025, down from 2.2% in 2024, supported by a 9.9% decline in gasoline prices. However, shelter and food prices remained elevated.

Outlook for 2026

The St. John’s CMA economy is expected to continue growing in 2026, though at a more moderate pace. Increased oil production, including activity related to the West White Rose project, is expected to support growth. However, external trade uncertainty remains a potential risk.

Learn More

The City of St. John’s prepares a variety of economic and statistical information including the Economic Review, Economic Outlook and the monthly Economic Snapshot. Sign up to receive these publications and read other economic data at StJohns.ca/Economy.

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 the Economic and Project Analysis Division, Department of Finance, Government of Newfoundland and Labrador, and the City of St. John’s.

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