Deficit triples in fall economic update

The province’s fiscal situation is more challenging than what was previously forecast in Budget 2025, according to Minister of Finance Craig Pardy.

The provincial deficit is now projected at $948 million, compared to the $372 million forecast in Budget 2025.

Pardy revealed that across multiple economic indicators, Newfoundland and Labrador’s economy is performing better than expected.

Newfoundland and Labrador is projected to lead all provinces with 5.3 per cent real Gross Domestic Product growth in 2025.

Household income is forecast to grow by 1.9 per cent. The housing starts were weaker than in 2024, but remain higher than the 10-year average for the province.

Both oil and mining production have increased. Fisheries and aquaculture have performed well.

Population growth has continued, but at a slower pace as net international migration levels were lower due to reduced federal targets. Employment is expected to remain on par with last year.

Inflation has slowed and interest rates are lower. Retail sales and tourism indicators remain strong.