NT Government: Economic data of COVID-19 impacts to help prioritize and focus economic recovery
The Government of the Northwest Territories (GNWT) today released data it has gathered from a March 2020 survey of Tourism operators and a broader survey of NWT businesses in April/May as part of its ongoing work to better understand the effects of COVID-19 on the NWT and how best to respond to them.
Overall, 81 percent of NWT business respondents reported a significant decrease in revenues. Tourism businesses experienced the largest revenue decreases in April and May followed by those working in transportation. Together, these two industries saw their revenues decline by an average of 71 percent.
Thanks to steps taken to keep diamond mines and the public sector active, the NWT economy will not be impacted as significantly as in other Canadian jurisdictions. Our economy is expected to contract by 3.3% in 2020; but that is significantly less than the national average of 8.2% forecast by the Conference Board of Canada.
While not all sectors will rebound at the same rate or to the same degree, over 90 percent of businesses surveyed in April and May said, they felt they could survive the COVID-19 pandemic.
The GNWT’s Department of Industry, Tourism and Investment has administered three surveys since March to evaluate the impact that COVID-19 is having on NWT businesses and the economy – and to help identify where support is needed to promote economic recovery. While preliminary findings are available, a consumer survey conducted in June to measure the demand-side of the economy is still being compiled.
“The COVID-19 pandemic has seriously affected economies worldwide, including the NWT economy. While we know that the pandemic is not over yet, we are already making plans to safely re-start our economy with the appropriate measures in place to protect public health, in consultation with Members of the Legislative Assembly, business, and Indigenous and community governments. These surveys will help inform our joint planning and our continuing efforts to support and sustain the NWT economy and businesses.
– Hon. Katrina Nokleby, Minister of Industry Tourism and Investment
- Government and Mining will continue to support the NWT economy primarily through procurement opportunities.
- Consumer spending and small business spending has rebounded since May.
- 71% of NWT residents say they are likely to travel within the NWT in the next 6 months.
- Survey data has also been provided to the Business Advisory Council to help inform and guide their recommendations to our government.”
For media requests, please contact:
Industry, Tourism and Investment
Government of the Northwest Territories