Budget 2005-2006
Fact Sheet – Economy

2004

• Canadian and U.S. economies continued to regain strength in 2004 and enjoyed robust growth following the slowdowns of 2003.
• Real GDP growth in Canada was 2.8 per cent in 2004.
• Real GDP growth in the United States was 4.4 per cent in 2004.
• The soaring appreciation of the Canadian dollar and high oil prices had an adverse impact on economic growth in New Brunswick.
• The provincial Department of Finance estimates New Brunswick's economy expanded by 2.5 per cent in 2004 despite external factors that affected the province.
• Job growth in New Brunswick reached a record annual high of 350,400 people employed in 2004.
• New Brunswick's unemployment rate dropped to an annual average of 9.8 per cent in 2004, while the provincial participation rate reached a new high of 63.9 per cent.
• Private and public capital investment in New Brunswick increased 7.4 per cent to a record $4.3 billion in 2004.
• Despite the rising Canadian dollar, New Brunswick's foreign exports of commodities rose 10.8 per cent to more than $9.4 billion, compared with an 8.6 per cent national increase.
• New Brunswick's manufacturing shipments increased 11.1 per cent, compared with the national increase of 8.4 per cent.
• Average weekly earnings in New Brunswick increased 3.0 per cent, almost double the 1.6 per cent national increase.
• Consumer inflation, as measured by the Consumer Price Index, increased by only 1.5 per cent in New Brunswick – far below the growth level of the previous two years and below the national rate for the first time since 2001.
• The latest monthly data show 28,000 jobs have been created in New Brunswick since 1999.

2005

• Private sector forecasters expect New Brunswick's real GDP growth will be in the range of 1.7 per cent and 2.5 per cent in 2005.
• The provincial Department of Finance estimates New Brunswick's real GDP growth will average 2.1 per cent in 2005 on account of decreased domestic and external demand for some commodities from most natural resource sectors and the ongoing strength of the Canadian dollar.
• Construction activity, continued twinning of the Trans-Canada Highway and significant provincial government investments in infrastructure will contribute to more economic growth.
• Employment levels are expected to increase at a steady pace in New Brunswick.
• Consumer inflation is expected to increase at about the same rate as last year in New Brunswick.