New Brunswick’s economy will grow by late 2014 thanks to trade and resources, says a BMO report.
The province’s real GDP should rise 1.3% this year, says Robert Kavcic, senior economist at BMO Capital Markets. That’s up from 1.1% in 2013, and will be followed by a 1.7% boost in 2015.
Both the manufacturing and resource sectors have challenges ahead, but production should begin to grow by 2015, says Kavcic. “A stronger U.S. economy and weaker Canadian dollar likely mean the worst is behind for the manufacturing sector.”
Forestry continues to play a critical role in the economic health of New Brunswick, says Carolyn Booth, senior vice president in the Atlantic division of BMO. New Brunswick’s forestry industry relies on exporting lumber to the U.S., and the rebound of the U.S. housing market bodes well for this industry, Booth says. Double-digit growth is expected in 2016.
The port of Saint John will continue to boost the economy as the container terminal is now a port of call to two of the largest shipping lines in the world, says Allison Hakomaki, regional vice president of Commercial Banking in the Atlantic division of BMO. Growth in container volume through the port exceeded 50 % in 2013, with further growth expected in 2014.