06:57 AM EDT, 04/10/2025 (MT Newswires) -- The province of Newfoundland & Labrador in Canada is projecting a wider deficit for fiscal 2025/26, with the $372 million shortfall, or 0.9% of gross domestic product, modestly larger than the $252 million now estimated for the prior year, said CIBC.

There remain sources of uncertainty regarding that projection, with possible upside to revenues when a deal with the province of Quebec regarding the 1969 Upper Churchill Contract is finalized, but also potentially downside to the deficit if a $200 million contingency related to United States tariff uncertainty is fully used, noted the bank.

Strong economic growth, led by investment in natural resources, is expected to bring budget surpluses by fiscal 2026/27 and beyond. As a result of capital investments, debt maturities and strengthening liquidity, projected borrowing is increasing to $4.1 billion for 2025/26, up from $2.8 billion this outgoing year, added CIBC.