Quote:
Originally Posted by Walk then Run
That is encouraging news, but what do they base this on? EI numbers? Real Estate numbers?  |
ECONOMY
Saint John economy on upswing: report
GEORGE HALIM Telegraph-Journal Share this article
August 4, 2014
Saint John city skyline.
Photo: Cindy Wilson/Telegraph-Journal
SAINT JOHN • Growth in the Saint John economy for 2014 appears to be moving in the right direction, according to a new Conference Board of Canada report.
The city’s real gross domestic product is expected to increase by 1.4 per cent in 2014, after growing by a meagre 0.2 per cent last year and falling 1.1 per cent in 2012.
“What we saw in Saint John last year was a weak growth,” said Jane McIntyre, economist with the Conference Board of Canada. “Still positive, but very weak growth.”
The numbers were pulled down partly by weakness in manufacturing which was not uncommon across the country last year, McIntyre said. Also, further decline in the construction sector didn’t help either, where the biggest fall occurred.
Construction output fell another 17.8 per cent in 2013, marking the sixth decline in as many years, the report states.
McIntyre said there’s optimism for the future, but the drop was in part because of declines in the housing market and also partly because of declines of the non residential side – with big projects playing a major role.
“This year what we’ll see is stronger growth, so we’re expecting construction output to increase for the first time in six years in Saint John,” she said.
The upgrades to the Irving pulp and paper mill are expected to be done in two phases, starting with the installation of a $198 million chip screening and handling system, according to the report. This first phase will begin in 2014 and last for two years.
Phase two involves the addition of a $250 million pulp dryer. In total, these projects will create the equivalent of 600 jobs during construction, something McIntyre said is welcome news for Saint John’s non-residential construction sector.
“That’s good news on the getting more investment in the city, getting more construction happening, those kinds of things,” she said. “Last year we had a decline in employment in Saint John.
“This year we’re looking at some improvement in the employment numbers.”
Another factor is that many of the bigger projects in the region over the past couple of years have now wound down, including the refurbishment of the Point Lepreau nuclear power plant, the One Mile House Interchange and the $88 million harbour cleanup program.
However, ongoing projects that will provide an additional lift to the non-residential construction sector this year include repairs to the Saint John Harbour Bridge, scheduled to be complete this fall, the construction of a new YMCA this year, and nearly $30 million to be spent on water and sewer upgrades and road upgrades, the report states.
From both a residential and non-residential point of view, McIntyre said it’s good to see the numbers on the upswing.
“While there will still be some decline in housing starts this year, that sort of decline is slowing,” she said. “So by next year we expect some growth in housing starts. On the other side of it we also have some good non-residential investments starting to happen again.”
Prev
Linear Mode
