New mining projects, particularly in the gold sector, are expected to drive strong economic growth in Canada’s far north, with Yukon and Nunavut surpassing the rest of Canada by 2010, a new report shows.
According to The Conference Board of Canada’s latest Territorial Outlook, the nearby Northwest Territories (N.W.T.), however, face challenging times as the diamond industry there matures and production of precious stones is forecast to fall over the next six years. Yet the N.W.T is set to benefit from the growth the mines in Nunavut and the Yukon will bring, mostly in other areas of the economy, with growth in services-based industries remaining flat for much of the forecast.
Economic growth in Nunavut, the Yukon and Northwest Territories as a whole is forecast to average 4.7% in 2019 and 4.5% in 2020 — easily outpacing the forecast Canadian average of below 2% growth.
“While the mining sector has been more cautious in this upswing cycle than in the past, there are still several mining projects that are advancing through the approval process and will bolster economic growth and employment opportunities in the northern territories over the next few years,” said Marie-Christine Bernard, Director, Provincial and Territorial Forecast, The Conference Board of Canada.
Fuelled by the construction and operation of new mines, economic growth in the territories as a whole is forecast to average 4.7% in 2019 and 4.5% in 2020 — easily outpacing the forecast Canadian average of below 2% growth.
Between now and 2020, Nunavut’s economy alone is expected to grow by an average of 7.3%, and then slow down to 4.6% annually, still higher than any other territory or province. Most of that growth will come from the expansion of Agnico Eagle’s Meliadine and Amaruq gold mines, as...