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BMO Financial Group

June 01, 2011 10:35 ET

BMO Blue Book: New Brunswick Growth to Pick Up in 2012

Pulp & paper industry faces challenges; technology and health services on the rise

FREDERICTON, NEW BRUNSWICK--(Marketwire - June 1, 2011) - Economic growth in New Brunswick is slowing after advancing a robust 3.3 per cent in 2010, according to the first edition of the BMO Blue Book, a joint publication of BMO Capital Markets Economics and BMO Commercial Banking. Much like the U.S. Federal Reserve's Beige Book, the BMO Blue Book combines the expertise of BMO's economists with information on current business conditions provided to BMO's commercial bankers by local businesspeople.

"A shift from fiscal stimulus to modest restraint and a strong Canadian dollar should hold growth to less than 2 per cent in 2011, before picking up slightly in 2012," said Robert Kavcic, Economist, BMO Capital Markets.

"Some of the traditionally strong sectors of the province's economy still have challenges to overcome – pulp and paper, for instance, is being disproportionately affected by the high dollar," noted Christine Cooper, District Vice-President, New Brunswick and PEI. "But other industries are showing good signs of strength, particularly in the research-intensive technology sector, software and mining for uranium and shale. Some smaller industries are showing growth within their particular niches as well, with companies in wellness/alternative health services doing well."

The full report can be found at www.bmocm.com/economics.

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