The economy in the census metropolitan area of St. John’s grew by five per cent last year, fueled by increased offshore oil production.

The capital city released its 2025 Economic Review this week, highlighting a number of the local economy’s main drivers.

Immigration is down and the region’s natural population has dropped, resulting in population growth of just 1.3 per cent in 2025, bringing the total population to 243,478.

Despite the addition of some 3,800 jobs to the local market – mostly in the service industry – the unemployment rate rose to 7.2 per cent as labour force growth outpaced job gains.

Household income increased by 1.8 per cent, and retail sales grew by 4.3 per cent to more than $6.2 billion.

Housing starts saw a 19.1 per cent increase in 2025 compared to the previous year, and inflation slowed to 1.3 per cent, down from 2.2 per cent in 2024. While shelter and food prices remain high, the drop in inflation was largely driven by a nearly 10 per cent drop in gas prices.