N.L. economy to dip again in 2015: Conference Board of Canada

Newfoundland and Labrador's economy will suffer another downturn for the second year in a row, according to the Conference Board of Canada. 

The independent research organization is forecasting an economic decline of 0.6 per cent this year, due to failing oil and metal prices. 

That follows a slip in GDP of 2.3 per cent in 2014, the board said in a statement Monday. 

"Although the Conference Board expects that oil prices will recover to above US $60 per barrel by the end of the year, the economic outlook for the province will be dim over the next two years, " Marie-Christine Bernard, an associate director with the board, said. 

Lower household spending

The latest prediction also touched on the impact that fly-in, fly-out workers have on the province, including the negative effects that will come if workers in Alberta continue to be served layoff notices. 

It pointed to the processing of nickel, copper and cobalt ores at Long Harbour as positive factor, noting it will help offset the dropping price of metals and oil. 

"The provincial labour market will continue to feel the effects of the weakening economy, with the province expected to shed jobs again this year," the report said. 

"The weak labour market will, in turn, lead to lower household spending over the next two years." 

Ontario, British Columbia and Manitoba are expected to be leaders in economic growth across Canada.