NUNAVUT - The Northern Outlook report predicts a nearly 10 per cent increase in Nunavut's economy this year, with the Meadowbank gold mine in Baker Lake expected to start production in the first quarter.

The report, a 10-year economic forecast published twice a year by the Conference Board of Canada, said this project will benefit the territory's economy, as it has done in the past, as gold, machinery, equipment and workers are carried back and forth from the mining site.

The Kitikmeot Corporation is the economic development arm of the Kitikmeot Inuit Association. It is fully owned by the Inuit and works on behalf of them. The corporation's president, Charlie Lyall, said he's optimistic about Nunavut's growth.

"I'm very optimistic with the different mining activities happening in this region. Newmont at Hope Bay is going forward. That's very good news," he said.

Three gold deposits have been found at the Hope Bay site, which Newmont calls on its website one of the biggest under-developed gold projects in North America.

"I think right now, mining is going to be the answer. The government is not doing anything at all. This community has looked for infrastructure money. They don't seem to care about it," said Lyall.

The territory's estimated growth is interesting to Chris West, the president of the Baffin Regional Chamber of Commerce.

"I think everything seems to be on its way back up. As far as mining, all three territories have different commodities. The diamond industry is a growing factor as far as the economy goes," he said. "If they're (Meadowbank) on target, that's going to be a big boost to the economy. We hope the same will spread throughout the territories. If we can have these companies contribute to the global economy, a 10 per cent increase is healthy."

West added he hopes for positive news from Baffinland Iron Mines Corporation in Mary River.

As the demand for seal meat and fur is increasing, he said, developing that and other industries, might also help bolster Nunavut's economy.

"Hopefully, we can put more effort in developing the arts and craft. I think there is potential there," he said.