Doug Ashbury
Northern News Services

NNSL (Dec 21/98) - The Northwest Territories 1997 gross domestic product grew slightly, according to the just-released inaugural issue of the Northwest Economic Monitor.

Citing preliminary Statistics Canada estimates, the new Resources Wildlife and Economic Development quarterly newsletter said gross domestic product rose 2.5 per cent compared with 4.8 per cent in 1996 (3.3 per cent, 1995).

Last year's 2.5 per cent increase in the value of goods and services produced in the NWT compares with a national average of 3.8 per cent for the same period. Total GDP in 1997 was $2.72 billion in 1992 dollars.

The NWT ranked sixth among the country's provinces and territories.

The growth occurred despite mine shutdowns and the closure of Esso's Norman Wells refinery in late 1996, according to the Economic Monitor.

Boosting the GDP was construction of BHP Diamond's Ekati mine with sparked a 36 per cent increase in non-residential construction investment.

Over the five years from 1992 to 1997, the North's GDP rose 15.3 per cent in constant dollars. This exceeded the nation's growth rate and put the NWT fifth among the provinces and territories.

Service and construction industries saw most of the growth while manufacturing, fishing, trapping, logging and forestry declined most.

On jobs, Statistics Canada figures show total aggregate industrial employment rose by 4,128 jobs or 19.8 per cent in the five years through 1997.

Trade, education, health and social services had strong growth while finance, insurance, real estate and communications declined slightly. Public sector employment sustained the largest losses.

The NWT enjoyed a healthy rate of employment increases until last year though. In 1997, the employment growth rate grew less than one per cent.

Total public sector employment fell six per cent last year with federal and territorial governments cutting 267 and 315 jobs respectively. But 228 new jobs at the local government level were generated.

The Northwest Economic Monitor is published quarterly by RWED's Community Economic Development Services Division.

The publication's information of GDP was compiled by GNWT economic statistician Angelo Coco. Other contributors to the first edition was RWED senior resource economist Cal Brackman and RWED resource economist Bruce Ashley.

Dan Westman, RWED planning manager, said the publication will focus on different areas of the economy each quarter.

The next issue will tackle tourism.

When it comes to potential contributors to the new western territory's GDP, Westman said the biggest area is in oil and gas.

"There is potential for two more diamond mines in the West (but) in the Deh Cho and the Sahtu there's potential for big bucks."