Investor Relations Newfoundland and Labrador

Economic Data and Information

• Our Economy
• Principal Economic Indicators
• Economics Data

Our Economy

Newfoundland and Labrador is primarily a resource-based economy. The extraction and processing of crude oil, minerals, fish and forest resources accounted for approximately 33 per cent of gross domestic product (GDP) in 2022. The geographic location of Newfoundland and Labrador has significantly influenced the development of its economy. With more than 29,000 kilometres of coastline, the importance of the Atlantic Ocean to the provincial economy is evident in many industries, such as fishing and aquaculture, offshore oil and gas, tourism, transportation and ship building.

Exports are crucial for the economy of Newfoundland and Labrador, representing almost 60 per cent of its GDP in 2022. Of the approximately $16 billion of international merchandise exports from the province in 2022, about 45 per cent were exported to the United States, followed by the United Kingdom (9.9 per cent), Netherlands (8.8 per cent) and Spain (7.6 per cent).

While many of the goods and services producing industries in the province are related to extracting, processing and exporting Newfoundland and Labrador's natural resources, the provincial economy also boasts a robust tourism industry, and over the past decade has diversified into other sectors such as aquaculture, technology, and film and television. Newfoundland and Labrador also has some of the best onshore wind resources in North America, which can be used to power wind turbines and generate electricity for industrial users/customers, export through transmission lines, and produce and export hydrogen/ammonia. The developing wind-hydrogen sector, in addition to the capacity to refine and export renewable biofuels through the newly-converted Come By Chance refinery, position the province well to take advantage of the transition to a greener global economy.

Principal Economic Indicators

The economy of Newfoundland and Labrador is influenced by global economic conditions, particularly the demand for, and prices of commodities such as crude oil and iron ore. As such, movements in these global commodity prices can cause measures of the provincial economy to fluctuate significantly from year-to-year. In 2022, Newfoundland and Labrador's nominal GDP was estimated at $40.7 billion, or 1.4 per cent of Canada's nominal GDP. Compared with 2021, the province's real GDP decreased by 1.7% per cent in 2022, due mainly to lower oil production, while real GDP in Canada increased by 3.8 per cent over the same period.

The Newfoundland and Labrador economy is unique compared to many other provinces in Canada given its dependence on seasonal industries. As a result, employment levels in the province fluctuate throughout the year, and the annual unemployment rate is generally higher than elsewhere in Canada. In 2022, Newfoundland and Labrador employed an average of 232,500 persons, with an average annual unemployment rate of 11.3 per cent.

Economic Data from the Economic, Fiscal and Statistics Branch of the Department of Finance

The Economics Division provides comprehensive information and advice on the provincial economy, including research, analysis and monitoring of macroeconomic trends, industry development opportunities, economic performance, government policies and development initiatives. The division is responsible for economic forecasting, economic impact analysis, demographic analysis, population projections, occupational projections and providing a range of economic inputs into the overall Budget preparation process. In addition to research reports on a broad range of topics and issues relevant to the provincial economy, the division is also responsible for the publication of the budget document, The Economy and the midyear Economic Update.