Newfoundland and Labrador to lead economic growth in 2026, Ontario to lag: report

Newfoundland and Labrador is poised to lead Canada's economic growth for a second consecutive year, according to a new report. The province's expansion is forecasted at 3.7 percent in 2026, propelled by surging crude prices and offshore oil projects. However, Ontario is expected to lag behind with the weakest growth among all Canadian provinces, expanding only 0.2 percent this year.

Signal49 Research, formerly known as the Conference Board of Canada, attributes Ontario's sluggish growth to the adverse effects of U.S. tariffs on its manufacturing sector. Meanwhile, Quebec is also feeling the pinch due to tariffs. The report predicts a more favorable economic outlook for Canada in the latter half of the year as hiring increases and businesses grow more confident in their investment plans.

Experts suggest that geopolitical tensions in the Middle East and demographic pressures have uneven impacts across the country. Higher energy prices have benefited some provinces, while the tariffs have disproportionately affected Ontario and Quebec.