Demographics and Energy Shift, Shape Weak Outlook
Real GDP growth in Newfoundland and Labrador is expected to come in at 1.3 per cent from 2026 to 2031, as oil production continues to lift output. However, real GDP growth will begin to ease in the next decade and become negative in the later 2030s in the face of decreasing population and lack of investment. Government finances will also come under greater pressure to meet the needs of an aging population, as demand for health care services increases.
Why and how will the province’s long-term demographic profile weigh on its GDP outlook, labour market, and government finances? What is the impact of a declining population on residential investment and government finances? How will the new hydro agreement between Quebec and Newfoundland and Labrador affect the province’s economic picture?
Read the issue briefing to get our full analysis.
