Province forecasts economic slowdown

While you won't hear it mentioned by the Premier, cabinet ministers or the administration's other spokespeople, the provincial government's own economic analysis division is forecasting an economic slowdown in the province over the next two years.

The Economy, 2006, delivered with the budget in the spring of 2006 forecast a shrinkage in the economy in 2008 and 2009. Real gross domestic product (GDP) was forecast to shrink by 1.5% each year.

Economic Review 2006, issued at the mid-way point in the current fiscal year, revised the estimates and provided projections for both nominal and real GDP. Both categories are forecast to see either negligible growth of less than one percent or a shrinkage of 1.5%.

Both documents pointed to oil production and mining output, including Voisey's Bay, as the major drivers of the economic growth into 2007.

Voisey's Bay is a deal criticized heavily by the current administration while in opposition.