B.C. and Ontario to Lead Economy
CBJ — Canada’s economy is expected to grow by 1.5% this year, with British Columbia poised to lead the country in growth, as previously noted in the May issue of The Canadian Business Journal during an interview with B.C. Finance Minister Mike de Jong.
According to a report by The Conference Board of Canada, four provinces will have a GDP growth rate of more than 2%: B.C., Ontario, Manitoba and Prince Edward Island.
British Columbia is expected to be the fastest-growing province for the next two years — with its economy expanding by 3% in both 2016 and 2017. While the mining sector is weak, strength in forestry, construction, transportation, and the real estate industry will power its growth, the outlook predicts.
Ontario’s GDP is forecast to rise by 2.8% in 2016 and by 2.6% in 2017, primarily because of export growth in the automotive sector. The low dollar and Toronto’s rising housing market are combining to reset economic conditions in the province.
Manitoba will grow by 2.1% in 2016 and 2.6% in 2017 as its agricultural sector and services continue to grow.
In Prince Edward Island, there has been growth in housing and in manufacturing that will result in 2.3% growth in 2016 and 1.7% 2017.
The optimism in these four provinces is offset by a 2% contraction in Alberta due primarily to low oil prices and the effects of the Fort McMurray wildfires.
New Brunswick’s economy is expected to shrink by 0.4% in 2016 because of weakening manufacturing, construction, and mining plus lacklustre growth in the services sector.
Saskatchewan and Newfoundland and Labrador also have stagnant economies. In N.L, Hebron and Muskrat Falls are scheduled to be completed in the next couple of years, worsening the outlook for 2017.
Saskatchewan has seen growth in agricultural sector, but mining has been hit hard by low commodity prices. It could growth by just 0.2% this year and 1.1% next year.