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In 2023 the City of St. John’s faced challenges in the economic landscape. Mayor Danny Breen said, “Inflation is the biggest challenge we encountered.”
“Delivering the services that we delivered last year was in the eight to $10 million range,” he said.
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He added construction expenses skyrocketed by 30 to 40 per cent, road repairs faced a 40 per cent cost hike.
Despite the hurdles, Breen said there are positive strides, particularly in housing, with increased activity and government-supported plans for apartment buildings.
Breen said the city also saw favourable developments. The resumption of oil industry projects and progress in the hydrogen sector, he said, marked positive indicators. The tech sector demonstrated growth, he added.
157 business in 11 months
Besides the above sectors, Breen said the city approved 157 new businesses in the first 11 months of 2023.
“31 of these businesses are home-based. Which is more than pre-COVID numbers,” said Breen.
He added the city also gained momentum from attractions like the pedestrian mall and outdoor concerts, such as Iceberg Alley and Churchill Park Music Festival.
“The pedestrian mall continues to be popular with residents. And it continues to be a centrepiece now of the summer,” said Breen.
“It also allowed businesses during COVID to bring their capacities back to pre-COVID levels.”
COVID recovery still underway
Speaking on COVID-19, Breen said the lingering impacts of the pandemic are still present. He said the difficulties were encountered by the Mary Brown Centre.
“Last year, we saw an increase in conventions, and we saw increased activity at the convention centre. But the Mary Brown Centre has been slower to recover from that,” said Breen.
Breen said to address these impacts, they have appointed a new CEO at St. John’s Sports and Entertainment. The focus, he said, is on increasing activity to generate more revenue and offset costs.
Breen added there is optimism for recovery in 2024, with more anticipated increase in 2025.
“The city is planning for improved economic conditions. We’re aligning with events like the Canada Summer Games and the 100th anniversary of Memorial University,” said Breen.
Growth anticipated in 2024
In 2024, Breen said he envisions major economic growth for St. John’s. He highlighted the key factors contributing to his optimism.
“Hopefully we’re going to see the inflation settle down and interest rates starting to correct themselves. Leading to increased housing investments, and we’re going to be seeing more federal money spent in that regard in 2024,” said Breen.
Breen added that continued investments in the minerals and hydrogen sectors will also contribute to this growth.
To further these initiatives, a new Regional Economic Development Agency is on the horizon, said Breen. St. John’s will be collaborating with neighbouring cities, Conception Bay South, and Paradise to strengthen the regional economy.
“There is a need for communities to work together and our focus will be a unified approach to address the challenges together,” said Breen.
Openings and closures in St. John’s
The economic landscape of St. John’s in 2023 saw several business openings and closures.
New openings:
– SpiceX Food Truck
– North48 Restaurant and Grill
– Jumping Bean (Mount Pearl)
– Presto’s
– Pizza Hut
– T’s Kitchen
– The Cookhouse
Closures:
– Get Stuffed
– Black Cat Pizzeria
– Water West
– That Pro Look
– Former fish plant in Salvage
– Balkan Kitchen
Noteworthy business announcements
The city also saw several noteworthy announcements that shaped the economic outlook in 2023.
– WestJet announced a direct flight from St. John’s to London, enhancing international connectivity.
– Petro-Canada, after a 20-year hiatus, returned to the province with four locations, including Torbay Rd., Kelsey Dr., Water St., and 986 Kenmount Rd.
– Flair Airlines is set to introduce three new routes to and from St. John’s, commencing on May 6, 2024. The new routes include Toronto to St. John’s, Kitchener-Waterloo to St. John’s, and Toronto to Deer Lake, starting at $69.
– A study released in September shared the economic impact of the Trans Canada Trail, contributing $23 billion to Canada’s economy.
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