New Brunswick sees stable, but almost stagnant, economic growth

New Brunswick's economy is barely growing, but wages remain a bright spot, a report from the Atlantic Provinces Economic Council suggests.

The report forecasts an increase in the growth rate of 0.8 per cent next year. Growth this year is up, but not by much, said David Chaundy, APEC's director of research.

"Overall our forecast for economic growth in the province as a whole this year is up 0.5 per cent. So a very weak growth rate," Chaundy said in an interview.

• APEC economist argues affordable housing approach not working
• Atlantic Canada's economic state a 'hodgepodge,' says APEC
• New Brunswick faces improving economic outlook in 2016

Chaundy attributed much of the sluggish growth to the closure of the potash mine in Picadilly, near Sussex, which has hurt export numbers.

Job numbers suffer

Employment in the province continues to falter.

"Employment in New Brunswick, for example, is still below what it was back in 2008 prior to the recession," said Chaundy.

But the outlook may be improving, he said, because of large-scale expansions planned for the province by some companies, such asWestJet.

Retail spending up

Information Morning - Fredericton12:50David Chaundy - APEC Report

The Atlantic Provinces Economic Council says there could be some "modest improvements" ahead for New Brunswick. Terry Seguin talks to the director of research.In some other areas, the New Brunswick economy performed well.

"In terms of a number of indicators [it's] fairly positive in New Brunswick this year around retail spending," said Chaundy.

Chaundy attributed the strong retail numbers to another positive for the provinces: wages.

"Wage gains are the strongest in the country and that's helping to support consumer spending," said Chaundy.

Innovation important

Export numbers suffered because of mine closures, including the Picadilly mine, but Seafood exports rose. Chaundy said the export numbers may continue toincrease, but cautioned that innovation, not price, is the key.

"Even in seafood products you can look at how you package your products, innovating in marketing and product positioning. ...The firms that are succeeding are not just competing on cost and trying to be the lowest price," said Chaundy.