The St. John’s region saw some modest growth last year according to the 2023 Economic Review released this week.

The St. John’s Census Metropolitan Area, which includes St. John’s, Paradise, Bauline, Logy Bay-Middle Cove-Outer Cove, Torbay and Flatrock, saw modest economic growth last year, when the oil and gas industry was not factored into the equation.

Real GDP however, dropped by 1.3 per cent in 2023, mainly due to lower oil production. Offshore oil production totaled 73.1 million barrels last year, down 13.3 per cent from 2022 with reduced output from the Hibernia, Hebron and White Rose projects.

Employment remained steady, however employment in the construction industry fell by 900 as higher interest rates put a damper on housing starts.

Household income was up 5 per cent over the previous year due to what the report says were “significantly higher wages and increased government transfers” including carbon tax rebate payments.

Meanwhile, the population grew by 2.1 per cent in 2023 over the previous year, driven by what the report calls “record-high immigration levels.”

The outlook for 2024? The economy in the St. John’s region is expected to grow in the year ahead with an expected rebound in oil production. However, if the Bank of Canada chooses to delay interest rate cuts, that could continue to limit consumer spending, housing starts and residential construction activity.