Economic growth in Canada’s territories will be strong in 2014, led by public and private sector investments in mining and transportation infrastructure, according to the latest edition of the Conference Board of Canada’s Territorial Outlook.
Economic growth in Canada's territories will be strong in 2014, led by public and private sector investments in mining and transportation infrastructure, according to the latest edition of the Conference Board of Canada's Territorial Outlook.
“Uncertainty in the global economy has hurt commodity prices and clouded the outlook for the mining industry in the territories,” said Marie-Christine Bernard, associate director, Provincial and Territorial Forecast, in a statement. “However, with long-term global demand for minerals and metals expected to remain positive, there is still a solid business case for many of the mining projects in the North.”
In 2014, the real GDP in the three territories combined is expected to grow by three per cent, for the second year in a row.
In Nunavut, economic growth is expected to expand by 4.4 per cent this year. Stronger gold production at the Meadowbank mine, a ramping-up in construction activity at the Mary River iron ore project, and a number of public infrastructure projects will contribute to overall growth. Mining exploration and deposit appraisal in the territory dropped 40 per cent in 2013 and is expected to fall another seven per cent in 2014.
Yukon’s economy grew by 1.3 per cent in 2013 as it was hit hard by the slowdown in mining exploration activities and in the construction industry. Yukon’s prospects are expected to improve this year as production is expected to increase at the Minto and Wolverine mines. In addition, a number of mining companies are investing in mine structures, exploration, and equipment in an effort to start or resume operations. Overall, Yukon’s real GDP is forecast to rise by 3.7 per cent in 2014.
Real GDP in the Northwest Territories (NWT) is expect to rise by 1.7 per cent in 2014, after growing by 1.9 per cent last year. NWT’s existing mining operations have long passed their peak production and mining output is expected to contract in 2014. However, high public sector investment, together with the anticipated development of a new diamond mine and three new metal mines this decade, will help the NWT economy grow and generate new jobs between 2016 and 2019.
JOC DIGITAL MEDIA
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