For Immediate Release
HALIFAX (June 10, 2021) – Capital spending on major projects is expected to increase by 8% in 2021 to $10.5 billion after a significant drop in 2020 due to COVID-19, according to the Atlantic Investment Outlook released this morning by the Atlantic Provinces Economic Council (APEC). This report summarizes the key findings of APEC’s 2021 Major Projects Inventory.
“Spending will increase in all four Atlantic provinces in 2021 with the strongest gains in Prince Edward Island and New Brunswick,” says David Chaundy, APEC President and CEO. “Newfoundland and Labrador will see the smallest increase in investment.”
Spending in most sectors is recovering from the lower investment in 2020. Housing and health care spending will be two of the biggest contributors to investment growth this year. Offshore oil and gas investment is expected to remain below last year’s level but remains the second most important sector for potential future investment.
“COVID-19 contributed to the loss of $4 billion in major project investment in Atlantic Canada in 2020 and 2021 as projects were delayed or put on hold,” says Chaundy. In addition, a number of large projects in 2019 could have potentially got underway but were postponed due to COVID-19, including offshore oil, mining and LNG projects. These projects amount to an additional $7 billion in postponed or cancelled investments due to COVID-19.
APEC’s 2021 Major Projects Inventory identifies 489 capital projects in various stages of development throughout Atlantic Canada, with a total value of nearly $150 billion, up 4% from last year’s Inventory.A major project is any capital project valued at $25 million or more.
Newfoundland and Labrador
Prince Edward Island
To obtain a copy of the Atlantic Investment Outlook or Major Projects Inventory or to arrange an interview with David Chaundy, APEC President & CEO, please contact:
Communications & Events Manager
Atlantic Provinces Economic Council