OTTAWA, May 27, 2014 /CNW/ - Economic growth in Canada's territories
will be strong in 2014, led by both public and private sector
investment in mining and transportation infrastructure, according to
the latest edition of the Conference Board of Canada's Territorial Outlook.
"Uncertainty in the global economy has hurt commodity prices and clouded
the outlook for the mining industry in the territories," said Marie-Christine Bernard, Associate Director, Provincial and Territorial Forecast. "However,
with long-term global demand for minerals and metals expected to remain
positive, there is still a solid business case for many of the mining
projects in the North."
In 2014, real gross domestic product (GDP) in the three territories
combined is expected to grow by three per cent, for the second year in
Mining companies in Nunavut and the Northwest Territories are budgeting
for lower spending on mineral exploration this year, due to lower
commodity prices and difficulty in obtaining financing.
In 2014, economic growth in the territories is expected to average three
per cent for the second year in a row - outpacing the Canadian average.
Demand for base metals and gold is expected to be strong in the long
Following a drop of 40 per cent last year, mining exploration and
deposit appraisal in Nunavut is expected to fall another seven per cent
in 2014. Economic growth in Nunavut is nonetheless forecast to expand
by 4.4 per cent this year. Stronger gold production at the Meadowbank
mine, a ramping-up in construction activity at the Mary River iron ore
project, and a number of public infrastructure projects will contribute
to overall growth.
Yukon experienced modest economic growth in 2013. Hit hard by the
slowdown in mining exploration activities and in the construction
industry, the economy grew by only 1.3 per cent last year. Yukon's
prospects will improve this year, as production is expected to increase
at the Minto and Wolverine mines. In addition, a number of mining
companies are investing in mine structures, exploration, and equipment
in an effort to start or resume operations. Overall, Yukon's real GDP
will rise by 3.7 per cent in 2014.
Real GDP in the Northwest Territories (NWT) is expected to advance by
1.7 per cent in 2014, after growing by 1.9 per cent in 2013. NWT's
existing mining operations have long passed their peak production,
thus, mining output is expected to contract in 2014. However, high
public sector investment, together with the anticipated development of
a new diamond mine and three new metal mines this decade, will help the
NWT economy grow and generate new jobs between 2016 and 2019.
The Territorial Outlook, published twice yearly, examines the economic
and fiscal outlook for each of the territories, including output by
industry, labour market conditions, and the demographic make-up. This
forecast is funded through the Conference Board's Centre for the North.
The Centre's main purpose is to work with Aboriginal leaders,
businesses, governments, communities, educational institutions, and
other organizations to provide insights into how sustainable prosperity
can be achieved in the North. The Centre for the North will help to
establish and implement strategies, policies and practices to transform
that vision into reality.
SOURCE: Conference Board of Canada
For further information:
Yvonne Squires, Media Relations, Tel.: 613- 526-3090 ext. 221