(March 30 – 10:20 ET) – TD Bank economists are bullish on Canada’s economic prospects, expecting all provinces to enjoy strength in 2000.
The economists say that the economic expansion will be driven by income improvements and a general trend to income tax cuts at both the federal and provincial levels. Newfoundland is expected to experience the strongest growth among the provinces in both 2000 and 2001, thanks to Hibernia and the Terra Nova offshore crude oil project.
Ontario and Quebec will enjoy strong performances, although they remain most susceptible to a U.S. slowdown. Nevertheless TD is calling for 5% growth in Ontario and 3.6% in Quebec, with strong employment growth in both places.
The Western provinces will be buoyed by strength in world commodity prices. Alberta is strongest, up 4.4% this year thanks to a recovery in the oilpatch and a diversification away from utter dependence on energy. B.C. is recovering, as are Saskatchewan and Manitoba, thanks to improvements in energy and mining prices particularly.
Nova Scotia will grow modestly in 2000, improving in 2001 as the Sable Island natural gas project comes on stream. New Brunswick will have slow growth as construction slows, but consumer spending and improvements in zinc and pulp should bolster the province. PEI will enjoy good growth due to tourism.
-IE Staff