The New Brunswick economy slowed markedly in 2001 due to the completion of major construction projects over the 1998 to 2000 period and the economic recession in the US, the province's main export destination.
Private sector forecasters estimated New Brunswick's real GDP growth in the 0.4% to 1.4% range. The Department of Finance estimated growth of 0.6%.
Business non-residential construction declined by an estimated 57.8%. Residential construction on the other hand, fuelled by low interest rates, had a strong year with housing starts increasing by 12.4%.
In general, service industries fared better than goods producing industries with the paper and allied, construction and mining sectors all reporting declines in 2001. The public sector also showed no growth.
World commodity prices started strong but declined throughout the year because of weakening demand, particularly in the US. Lumber prices, however, were already weak at the beginning of the year and surged momentarily when the US Department of Commerce announced countervailing and anti-dumping duties on Canadian imports of softwood lumber.
On the expenditure side, despite the end of major construction projects, the level of capital investment in New Brunswick is still the third highest on record. Wages and salaries growth led to an increase of personal expenditures on goods and services.
