N.L. exceeding economic expectations, Coady says in pre-election fiscal update

Newfoundland and Labrador is exceeding its expectations economically, according to the province's 2024 fiscal and economic update

Finance Minister Siobhan Coady provided the update on Wednesday afternoon. For the first time in a decade, she said the province has upped its credit rating.

"Our economy is performing very well," she said.

Coady, who delivered what is likely to be the final fall update before a general election expected in 2025, said employment and household income is up in 2024 and inflation has eased to levels below the national average.

For the last 14 quarters, Coady said, the population has increased. From July 1, 2023 to July 1, 2024, Newfoundland and Labrador's population grew by 6,340.

The province's total population is 545,247 as of July 1, 2024.

WATCH | Siobhan Coady puts a bright spin on latest Liberal budget update:

Economy has exceeded expectations, finance minister says

11 days ago

Duration 2:14

Finance Minister Siobhan Coady says one economic indicator after another shows improvement, from employment to population. But as Mark Quinn reports, Coadys own report shows the deficit is bigger, and revenues are lower than forecast.

Coady said the provincial government would like to see continued population growth despite Canada's new immigration plan that would cut the projected number of new permanent residents the country takes in.

"We still have a significant need for more population in the province," she said.

The province's labour market reported employment gains in each month of 2024.

Unemployment rates have lowered by 10.1 per cent in the first eight months of the year increasing the labour force by 3.1 per cent during the same January to September period.

A strong economy and growing population will help Newfoundland and Labrador have a vibrant future, Coady said.

"There are a lot of businesses still looking for workers so we will continue to press the federal government to ensure that we have more Newfoundlanders and Labradorians," she said.

Consumer spending strong

Retail sales account for over half of consumer spending in Newfoundland and Labrador totalling $7.9 billionfrom January to August.

Consumer spending totalled $7.5 billionover the same period in 2023.

New motor vehicles sales increased by 24.9 per cent compared to this time last year. Sales at food service and drinking establishments totalled $600.8 million, an increase of four per cent.

Total provincial housing starts during the first three quarters of 2024 increased by 62.9 per cent.

"Retail sales are expected to remain strong," Coady said.

Fiscal outlook

Fiscally, Coady said the province is stable.

Budget 2024 projected an annual deficit of $152 million.However, that number will now sit at $218 million, meaning the province will spend $66 millionmore thanitintended to spend this year.

Coady said this is because oil revenue is down due to a slow in production.

"Oil production is down, but it will come up.The oil is still in the ground so it will come up eventually," Coady said.

However, Newfoundland and Labrador Auditor General Denise Hanrahanis advising caution.

She said the province is not improving.

"Even with an increasing population, these financial indicators and the challenging demographic and economic risks we face suggest that the province's financial position is worsening," Hanrahan said in a statement Wednesday.

Opposition Leader Tony Wakehamis not viewing Wednesday's update as rosy, either.

"What I've taken from it so far is that fact that our deficit is up, our net debt is also up, our revenues are down," he said.

"Of course, [there's] a reliance on oil once again. If it wasn't for an increase in personal income tax, our deficit would be much higher."

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