The Honourable Craig Pardy, Minister of Finance, today released the new government’s first fall Fiscal and Economic Update since the October election.
In the first part of his update, Minister Pardy confirmed that the province’s fiscal situation is more challenging than what was previously forecast in Budget 2025.
The provincial deficit is now projected at $948 million, compared to the $372 million forecast in Budget 2025.
However, Minister Pardy also revealed that across multiple economic indicators, Newfoundland and Labrador’s economy is performing better than expected.
- Newfoundland and Labrador is projected to lead all provinces with 5.3 per cent real Gross Domestic Product growth in 2025.
- Employment is expected to remain on par with last year, with 245,600 people employed.
- Household income is forecast to grow by 1.9 per cent largely due to wage gains.
- Housing starts are weaker than in 2024 but remain higher than the 10-year average for the province.
- Both oil and mining production have increased, but capital investment is forecast to decline by 6.3 per cent as major project construction activity has slowed.
- Fisheries and aquaculture have performed well, despite global market conditions.
- Population growth has continued, but at a slower pace as net international migration levels were lower due to reduced federal targets.
- Inflation has slowed and interest rates are lower, down from 2.75 per cent in April to the current rate of 2.25 per cent.
- Retail sales and tourism indicators remain strong.
The 2025 Fiscal and Economic Update is available here.
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“Newfoundland and Labrador’s economy has proven resilient, but our fiscal situation is more serious than we thought. Our government remains firm on its commitments to better healthcare, lower taxes, and safer communities, and will work within the current fiscal parameters to improve life in Newfoundland and Labrador – for all of us.”
Honourable Craig Pardy
Minister of Finance
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Learn more
Fall Fiscal and Economic Update 2025
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