News Releases

ST. JOHN'S, NEWFOUNDLAND and LABRADOR--(Marketwire - June 1, 2011) - After posting the fastest rate of real GDP growth in the country in 2010, Newfoundland & Labrador will continue to rank among the fastest-growing provinces in Canada, according to the first edition of the BMO Blue Book, a joint publication of BMO Capital Markets Economics and BMO Commercial Banking. Much like the U.S. Federal Reserve's Beige Book, the BMO Blue Book combines the expertise of BMO's economists with information on current business conditions provided to BMO's commercial bankers by local businesspeople.

"Newfoundland & Labrador's growth will likely cool from 6 per cent to 3.7 per cent this year, which still ranks among the best in Canada," said Robert Kavcic, Economist, BMO Capital Markets. "By 2012, growth will begin to decelerate more sharply as fiscal stimulus eventually winds down, but for now, the taps remain fully open."

"Newfoundland & Labrador finds itself in an optimistic mood," noted Jim Fallon, District Vice-President, Newfoundland & Labrador, BMO Financial Group. "The province weathered the recession particularly well relative to the rest of the country, which has helped give people a starting point for their optimism. But perhaps the most important factor encouraging residents of the province is the plethora of major projects, such as the Lower Churchill hydro development, new mining production and the Hebron Oil Field."

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