This year’s dry conditions have resulted in a projected decline in the Province’s growth forecast.
The Royal Bank revising its 2015 forecast moving from an increase of 1.6% to a drop of 0.6 percent
In the report, Assistant Chief Economist Paul Ferley says the earlier projection was based on historically average weather conditions during the growing season, as the crop developed, however, the drier than normal conditions set in especially in the western half of the province.
Crop production numbers released by Stats Canada in August confirmed
the negative effect and show production of the three largest crops in the province are projected to drop by 14% relative to last year’s totals.
For 2016, the report assumes a return to normal growing conditions, which they expect will counter the decline with crop production rising by 12%.