Economy

Historically, the economy of Newfoundland has been based primarily on fishing and on the canning and processing of fish. Also important have been mining, lumbering, and related processing and manufacturing activities. Since the early 1990's, fishing and related industries have declined significantly because of the depletion of fish stocks in coastal waters. Diversification of Newfoundland's economy is a major goal for the provincial government. Pulp and paper milling are the largest industries in terms of value of production. The service industries employ the largest number of workers in the province.

Newfoundland has rich mineral resources, and mining has developed substantially since the 1950's. Of outstanding significance are vast iron ore deposits extending through western Labrador into Quebec. They constitute the largest reserves in Canada. Mines in Labrador account for roughly half of the nation's annual iron ore production and more than 80 per cent of Newfoundland's total mineral output by value. Other minerals produced in sizable quantities include copper, lead, zinc, asbestos, and gypsum. Petroleum, produced offshore, is also important.

Lumbering has been a major activity in the province since the early 20th century and provides seasonal jobs for many Newfoundlanders. Commercial logging is confined mainly to Newfoundland island, where forests are of better quality and are more accessible than in Labrador. Most of the wood cut is processed into pulp for the paper industry.

For hundreds of years the Grand Banks and other fisheries off the coast of Newfoundland were among the most productive fishing grounds in the world. Especially important were cod. By the early 1990's, after decades of overfishing, the fisheries of the Grand Banks and other coastal areas were in danger of being destroyed. In 1992 the Canadian government banned all cod fishing to give the cod time to reestablish themselves. Some fishing still occurs, mainly for crabs.

Agriculture has little significance in Newfoundland, where the climate and soils are generally unsuited to farming. Cultivation is limited to small areas of Newfoundland island, mainly on the Avalon Peninsula and along the southwestern coast. Potatoes, turnips, cabbage, and hay are the chief crops raised.

There is some dairy, hog, and poultry farming on the island. Fur trapping provides supplementary income for some farmers.

Newfoundland's principal highway is a section of the Trans-Canada Highway, which crosses Newfoundland island from Channel-Port aux Basques to St. John's and links most of the larger cities. Most of the rest of the province's paved roads are also on Newfoundland island. Ferries connect the island with Nova Scotia and with Labrador. Coastal vessels provide service to many of the province's seaside communities that are not served by roads. A privately owned railway offers passenger service from Shefferville, Labrador, to Sept-Îles, Quebec. St. John's is the province's chief seaport, handling both coastal and overseas trade. Several airports, including an international airport at Gander, serve the province.