News Releases

FREDERICTON, NEW BRUNSWICK--(Marketwired - May 4, 2015) - Economic momentum in New Brunswick is expected to improve in the year ahead, according to the BMO Blue Book released today by 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.

"Real GDP for New Brunswick is expected to grow 1.1 per cent this year," said Robert Kavcic, Senior Economist, BMO Capital Markets. "We are expecting that exports will get a boost from a weaker loonie."

"Forestry continues to lead the way as the key sector for the province," said Carolyn Booth, Senior Vice President, Atlantic Provinces Division, BMO Bank of Montreal. "With the low Canadian dollar, a stronger U.S. economy and a corresponding demand for more home construction south of the border, the forestry industry is likely to see a noticeable improvement, and exporters of wood products and construction materials are optimistic about their future prospects."

Ms. Booth added that the opening of the new potash mine, combined with existing production and rising global demand, should bring significant income to the province in the years ahead.

Challenges remain in the manufacturing sector though the potash sector has improved. "Potash output is poised to rise as the Piccadilly mine is set to commence production eight years after being announced, while the global price backdrop has stabilized after a tough few years," noted Mr. Kavcic. "Forestry exports should also get a boost from the U.S. housing recovery, with housing starts south of the border now consistently topping the 1 million annualized mark."

Ms. Booth noted that BMO's team of experts is here to help customers in the region make decisions to boost productivity, enable them to expand into new markets and make strategic investment decisions that will propel growth and drive success.

The full BMO Blue Book can be downloaded at www.bmocm.com/economics.

About BMO Financial Group

Established in 1817, BMO Financial Group is a highly diversified financial services provider based in North America. With total assets of approximately $672 billion as of January 31, 2015, and more than 46,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and services to more than 12 million customers and conducts business through three operating groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets.