Overview

• The North American economies continued to grow at a strong pace in 2000. Led by business investment and consumer expenditure, Canada had real Gross Domestic Product (GDP) growth of 4.7%. In New Brunswick, economic growth of 3.5% was stronger than anticipated. Continuation of major construction projects in the transportation and manufacturing sectors, as well as additional development in the energy sector, contributed to overall growth.

• Increases in New Brunswick manufacturing shipments, exports, housing starts and restaurant receipts surpassed national rates. Manufacturing shipments and exports, influenced by higher commodity prices, each increased by over 20%. Housing starts reached their highest level since 1994.

• Retail trade growth slowed, following near record growth in 1999. The province’s inflation rate was above the Canadian average for the first time since 1997 as higher energy prices exerted upward pressure. Tourism revenue held steady and capital investment declined somewhat relative to last year’s record levels. Population growth was more than double the previous year.

• New Brunswick employment reached a record high in 2000, increasing 1.8% to 334,400. The majority of employment gains were in full-time jobs. With slower growth in the labour force (+1.6%), the unemployment rate fell to a new low of 10.0%. The participation rate rose for the fourth year in a row to 61.6%. Wages and salaries subsequently continued to increase.

• The mining, shipbuilding, electrical energy and wood products sectors are facing challenges.

• For 2001, economic growth in North America is expected to slow, although Canada’s performance should be stronger than that of the US. Real GDP in New Brunswick is projected to grow by 2.1%. Capital investment is anticipated to be relatively strong despite the completion of major projects. The provincial unemployment rate is projected to make additional progress. Energy prices are expected to moderate, resulting in lower consumer inflation.