Oil Biz Continues to Drive St. John’s Economy, Latest Forecast Shows

St. John’s has released its economic outlook report for 2024.

And according to Mayor Danny Breen, things are looking up.

Population in the St. John’s census metropolitan area is expected to grow by 1.4 per cent to more than 235,000 in 2024.

Meanwhile, inflation is forecast to fall from 3.7 per cent last year to 2.7 per cent as a moderation in the price of food and services “more than offset higher prices for fuels.”

The year-to-date Consumer Price Index, however, indicates that inflation “remains sticky,” says Breen, noting year-over-year inflation increasing from 2.5 per cent in January to 3.1 per cent in March was driven by the cost of shelter and transportation.

Oil also continues to drive the economy in the region, according to the report, although real GDP fell by 2.1 percent last year as output in the offshore fell in all operating fields. It’s expected to increase again, though, by 3.2 per cent to $16.1 billion due to higher oil production at Terra Nova, which was out of operation for most of last year.

When oil production is not factored in, real GDP is only expected to grow by 1 per cent.