Exports leading the way in improving N.B. economy: RBC outlook report

A new report suggests New Brunswick’s stagnant economy is starting to show modest signs of growth.

RBC’s latest economic outlook predicts the province’s economy will grow by 1.9 percent this year, fuelled largely by the natural resources sector and export manufacturing.

Economist Kirsten Cornelson notes that employment has stopped declining, retail sales are doing moderately well, and average weekly earnings are growing.

In 2012, Cornelson expects New Brunswick to post economic growth of 2.3 percent, mainly on the continuing strength of the export sector.

First quarter shipments this year were up 9.1 percent over the fourth quarter of 2010, thanks in part to the resumption of production at Saint John’s Irving Oil refinery, which shut down for maintenance last fall.

Nova Scotia, meanwhile, is expected to trail the Atlantic region with economic growth of just 1.7 percent this year.