One of the country's top economists is predicting big things this year for Newfoundland and Labrador.

CIBC's Avery Shenfeld addressed the St. John's Board of Trade's annual business summit on Thursday morning.

He said the province had no overall growth and was the poorest provincial performer for 2012, despite good employment numbers.

"2012 was a year where most of the economy did fine, but because of disruptions in energy output and because that sector is so large, it actually makes the overall growth number pretty close to zero," said Shenfeld. "The overall economy looks like it goes from boom to bust in very short order. You see the same sort of thing in Alberta to some extent, and both of those provinces' finance ministers find that a challenge because you're budgeting then with very uncertain revenues from year to year."

Predictions for 2013

However, Shenfeld forecasts Newfoundland and Labrador will lead the country in 2013 with 4.4 per cent growth in gross domestic product, largely because offshore oil production will come back to full strength.

At Thursday's business show, those in the private sector were smiling.

Denis Mahoney, president of the St. John's Board of Trade, said the boom is here.

"It's an opportunity. We think this is the beginning of a great opportunity," said Mahoney. "We need a population strategy to bring more people to this province to help us diversify, to help strengthen our economy, to help businesses succeed."

Shenfeld said the provincial government must reign in spending and make more conservative revenue projections. He added that while 2013 looks strong, it's important to bear in mind that long-term growth is still modest until big projects such as Hebron and Muskrat Falls come online.