http://www.canada.com/nationalpost/financialpost/story.html?id=1749a27c-1cfc-4087-97f5-4e780f6ff2aa&k=83781
Coastal provinces are showing strong growth, every province is forecasted to have an overall surplus in the year of 2007. Most provinces are using surplus towards improving infrastructure, while ontario and quebec are putting them into tax relief for industries and personnal benifit pays. There is a weakness in our economy and that lies in the industrial sector in Ontario and Quebec. With Newfoundland and Labrador leading the country, we are showing a predicted overall gain of real GDP this year. It is expected that Alberta will gain 4.6 per cent in real GDP this year, and fall short of 0.9 cent in 2008. These increases are contributed mostly from their mineral production, and the drilling happening in northern Alberta. Manitobas construction boom will boost its real GDP by 3.6 per cent. Saskatchewans GDP will rise by 3.2 per cent from agraculture and potash productions. New Brunswicks will grow a 3.1 per cent also from construction boom and the resurection of the mining industry. BC will rise 3.1 per cent from the ultra low unemployment rate and its social services. Nova Scotia will gain 2.4 per cent this year from social services and governments expansion into prince-edward island.
Industrial sectors in Ontario and Quebec are facing hardship with high energy costs, global competition and the increasing dollar value, which limits this years growth to 2.5 per cent in real GDP.
This summary relates to the REAL GDP in this chapter. We see in this article the talk about Real GDP growths this year. Although Ontario and Quebec are very heavily industrialized in their anual GDP values, we see that high energy costs and increases to the dollar value limits growth and expenditures in those sectors. We also see the contributions to real GDP from government spending. Nova Scotia for example is expanding into Prince Edward Island, and that would have contributed to its real GDP for this year. I can understand why there is hardship in the industrial sectors in Ontario and Quebec, in industries, most of manufactured goods and materials are imported. The growth in our dollar value would mean that businesses will suffer, as businesses that trade on the global level all use US dollars. With such a strong value in the CND dollar, it is more costly to do business with our countries as our dollar is now worth more than it was. Exchaning currencies would from US dollars into Canadian would result in a loss as our Dollar value continue to grow. Those businesses would then retract from spending so much and limit their production of goods for this year.
