Stronger global economic growth is expected in the second half of 2002.

Real GDP growth in Newfoundland and Labrador is expected to be 3.7%, the strongest of all provinces. This will mark the third time in five years that the province will lead the country in terms of real GDP growth.

Employment is expected to grow by 1.4% to 214,200, and the unemployment rate is expected to decline to 15.7%.

Real disposable income is expected to grow by 1.5%.

Retail sales are expected to grow by 3.3% to over $5.0 billion. This will mark the first time that retail sales have exceeded this threshold.

Capital investment is expected to decline by 1.5%, reflecting, in part, the completion of Terra Nova construction last year.

Inflation is expected to remain fairly low at 1.7%.

Hibernia and Terra Nova are expected to produce a combined total of 87 million barrels of oil resulting in a 60% gain in overall production levels.

Project sanction from the White Rose owners is expected.

Onshore oil production on the Port au Port Peninsula is expected to begin.

Employment at customer contact centres is expected to grow to 4,500 by December 2002.

Fish landings are expected to increase by 5% to 262,000 tonnes, led by a recovery in shrimp landings.

Aquaculture production is expected to grow by almost 40% to about 7,500 tonnes, and the value of production is expected to exceed $30 million.

Most other resource-based industries will benefit from a stronger global economy in the second half of 2002, and production levels should surpass that of 2001. A final decision on U.S. lumber tariffs is expected by May 2002.

Population loss is expected to continue due to net out-migration and falling natural population increase. 

Tourism is expected to be boosted by the completion of the Trans Labrador Highway to Cartwright, the special tourism celebrations planned for Labrador, increased film-related publicity, and ongoing efforts to promote the province as a cruise ship destination.

Negotiations are expected to continue with Inco on the development of the Voisey’s Bay nickel deposit, and with Alcoa on the development of the Lower Churchill Hydro Development.