Coady provides economic update

Deputy Premier and Minister of Finance Siobhan Coady provided a financial update on Monday.

The economy in Newfoundland and Labrador continues to be resilient despite the persistence of global uncertainty.

Real GDP growth for Newfoundland and Labrador is anticipated to be 6.3 per cent in 2025, up from 4.4 per cent forecast in Budget 2025, with the improved growth due to less than anticipated tariff impacts, higher capital investment and stronger consumer spending.

Capital investment is forecast to increase by 10.3 per cent in 2025, driven by rising housing starts and pre-construction activity related to Churchill River development.

Retail sales have been very strong so far, increasing the forecast to 3.9 per cent in 2025, up from 2.0 per cent forecast in Budget 2025.

Housing starts in the province for 2025 are expected to increase by 20 per cent in 2025, up from 13.7 per cent forecast in Budget 2025.

Employment has been stronger than expected through June, with annual employment now forecast to total 246,600 persons, continuing a multi-year trend in job growth.

The unemployment rate in 2025 is expected to be 9.9 per cent, lower than the 10.8 per cent forecast in Budget 2025 and one of the lowest recorded.

Inflation is expected to be 0.9 per cent this year, which is significantly lower than the 2.5 per cent forecast in Budget 2025 due to lower tariff impacts.

Contingency allocated in Budget 2025 is being used to help cover the cost of the wildfires.