Real Gross Domestic Product (GDP) grew by 1.3%, somewhat lower than expected, reflecting the impact of the global economic slowdown on exports.

Real disposable income growth of 3.3% was higher than real personal income growth (2.8%) as a result of income tax reductions.

Retail trade grew by 8.5% to more than $4.9 billion, the fourth year since 1996 that growth exceeded 7%.

Housing starts totalled 1,788, up 22.5% from 2000, driven by low mortgage rates.

Employment grew by 3.3% to reach a record high of 211,300. The unemployment rate was 16.1%, the lowest since 1989.

Capital investment declined by 4.2%. The decline was due, in large part, to the winding up of Terra Nova construction, a Gulf ferry purchase in 2000, and the completion of work on several major health care facilities.

Inflation averaged 1.1% for the year, its lowest level since 1998.

Hibernia production totalled 54.3 million barrels, up 3% from 2000. Production value was estimated at $2.1 billion.

The Terra Nova production vessel arrived at the offshore field in August for final hook-up and commissioning.

The service sector was boosted by the opening of new customer contact centres in St. John’s, Grand Falls-Windsor and Carbonear, which combined, created almost 800 new jobs.

Non-resident tourism visitation was 427,700, up marginally from 2000. Declines in auto and air visitation were offset by increased cruise ship visitation.

The value of manufacturing shipments remained stable at about $2.2 billion.

Weaker demand for newsprint resulted in a decline of almost 8% in local shipments to 745,800 tonnes. Despite the decline, shipments were still the second highest annual level ever recorded.

Impeded by an almost three month shutdown of the inshore shrimp fishery, fish landings totalled 249,000 tonnes, down by 7% from 2000. The landed value was $489 million, down 14% from 2000.

Iron ore production declined by almost 18% due, in part, to reductions in North American manufacturing, in particular automobile production.

The population declined by 0.6% in 2001 due to continuing net out-migration.

Negotiations continued on the development of two major projects. Voisey’s Bay discussions resumed between the province and Inco, and a joint feasibility study on the Lower Churchill Hydro Development was completed by the province and Alcoa. Government approval on a third major project, the White Rose oil project, was granted in December.