With economic prospects healthy in the near-term, New Brunswick's growth is expected to remain at approximately 2.5 per cent for 2008 and 2009, according to the latest provincial economic outlook released Royal Bank of Canada (RBC).

A healthy job market and solid wage growth have continued to support and stabilize the province's economy, according to Craig Wright, Senior Vice-President and Chief Economist at RBC. While the forestry sector remains under pressure, strength in construction and service sector job growth has helped offset some of the weakness.

The development of a new $1.7 billion potash mine is expected to fill the void of the completed construction of a liquid natural gas (LNG) terminal. The report stated that anticipation of a second major oil refinery has also improved longer-term growth potential, even though a decision is not expected until 2009. Already having the country's largest oil refinery, the impact of a second one of equal capacity would be a sizeable boost to the province's economy in the early part of the next decade.

Not only do capital investments of this size (estimated between $5 and $7 billion) generate additional employment and business opportunities during both the construction and operational stages, there are also significant spin-off effects, such as jobs in wholesale trade, transportation, construction maintenance and retail services sectors.

The growth gap between the commodity-rich Western provinces and manufacturing-heavy Central Canada is expected to persist in 2008. Across Canada, Saskatchewan is expected to be the top growth performer this year as its economy benefits from strength in energy, mining, and agriculture sectors. Conversely, Newfoundland and Labrador should be the laggard as waning oil production weighs on its growth.

The strong Canadian dollar and softer U.S. demand for exports continue to weaken manufacturing sectors across the country. Ontario's weak trade sector would see the province teeter on the brink of recession through 2008, but it should pick-up in 2009
to coincide with a recovering U.S. economy.

The RBC Economics Provincial Outlook assesses the provinces according to economic growth, employment growth, unemployment rates, personal income growth, retail sales, housing starts, and the Consumer Price Index.