News Releases

Capital investment will buffer the challenges of a strong loonie and slowing U.S. demand hitting New Brunswick's forestry industry, according to a provincial outlook released today by BMO Financial Group.

“Major projects such as the $1.4 billion Point Lepreau nuclear plant upgrade continue to fuel non-residential construction activity,” said Doug Porter, Deputy Chief Economist, BMO Capital Markets. “Longer term, a planned $1.6 billion mine development by Potash Corp. is also encouraging news.”

Highlights of the report include:

• GDP growth should dip modestly to 2 per cent this year from an expected 2.3 per cent in 2007 and then rise again to 2.3 per cent for 2009.
• The unemployment rate is expected to be 7.8 per cent and 8.1 per cent in 2008 and 2009, respectively, up from a record low of 7.5 per cent last year.
• A nagging migration problem has suddenly brightened with recent new inflows hitting a level not seen in more than 20 years.
• Housing starts should hit 3,000 in 2008 and 2009.

The complete report can be found at www.bmocm.com/economics.

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