Atlantic economic recovery to continue, but at a slower pace in 2022
Labour shortages, higher prices and supply chain shortages may constrain the recovery.
Atlantic Canada’s GDP will grow by 2.2% in 2022. The Maritime provinces are recovering strongly following smaller economic contractions due to COVID-19. However, travel-related industries face a multi-year recovery in demand.
APEC expects Nova Scotia will lead regional economic growth in 2022 with a 3.5% gain. Newfoundland and Labrador will trail the recovery due to weaker oil activity and production.
We expect employment in the Atlantic region to expand by 2.1% next year Higher immigration in 2022 will add to record interprovincial migration this year, which should boost labour supply, incomes and spending.
The pace of the recovery in 2022 could be constrained by several factors including further outbreaks of COVID-19, labour shortages, rising prices and supply chain shortages.