A new report from RBC Financial’s economics department says that Newfoundland will rank as the top province in terms of real GDP growth in 2002 and 2003.

It says that economic growth will be weakest in Saskatchewan and especially in British Columbia. The economies of Ontario and Quebec were particularly hard hit last year by the North American slump in manufacturing, but are now expected to undergo a vigorous turnaround this year.

RBC says Newfoundland’s real GDP growth will bounce back sharply this year as crude oil output returns to normal after unforeseen delays last year. Construction of the $2.5 billion White Rose offshore project will also get under way this year, with construction activity peaking in the second half of 2003.

Alberta is in second place with real GDP growth expected to average 4% per year in 2002-2003. Ontario and Quebec follow closely behind with real GDP growth bouncing back this year, it says.

RBC predicts that Manitoba and New Brunswick will also recover smartly this year and real GDP growth should average 3.5% per year in 2002-03 in both provinces. Nova Scotia, Prince Edward Island and Saskatchewan follow with average annual GDP growth in the 3% per year range.

B.C. remains the only province where growth prospects have not improved and remain weak. Real GDP growth in the province is unlikely to exceed 1% this year.