Central Canadian Cities Show Only Modest Gains in 2014, but 2015 Looks Better

Prairie cities to remain fastest growing metropolitan economies over the next two years

Link to publication: http://www.conferenceboard.ca/e-library/abstract.aspx?did=6556

OTTAWA, Oct. 20, 2014 /CNW/ - Economic growth in central Canadian cities is on track to improve this year and next, but they will still lag their western Canadian counterparts, according to The Conference Board of Canada's Metropolitan Outlook: Autumn 2014.

"Cities in central and eastern Canada will see their economic fortunes improve this year and next, in line with strengthening economic activity in the United States, Canada's largest trading partner. That said, these cities will still see growth lag behind their Western Canadian counterparts," said Alan Arcand, Associate Director, Centre for Municipal Studies.

HIGHLIGHTS

• Economic growth in central and eastern Canadian cities is on track to improve this year and next, but they will still generally lag their western Canadian counterparts.
• Edmonton will have the fastest growing metropolitan economy in Canada with growth of 4.9 per cent in 2014.
• Along with Edmonton, Saskatoon, Calgary, Regina, and Vancouver will also post economic growth above three per cent this year. 

Toronto's manufacturing sector is set to bounce back this year, thanks to an improving U.S. economy and a weaker Canadian dollar. However, falling housing starts will result in a reduction in overall construction activity, limiting real GDP growth to 2.3 per cent in 2014. Broad-based improvement next year will fuel economic growth of 2.8 per cent, Toronto's strongest gain in five years.

A turnaround in manufacturing will help lift Hamilton's economy by 1.3 per cent in 2014, up from a meagre 0.2 per cent gain in 2013. Further improvement is in store next year when a 2.3 per cent gain is forecast.  

Ottawa-Gatineau's economy continues to be hampered by federal government fiscal restraint. Real GDP is forecast to increase by just 0.7 per cent this year, before improving to 1.8 per cent in 2015.

Montreal's economy is on pace to expand by 1.8 per cent in 2014, making this the fourth straight year of growth below 2 per cent. Fortunately, this streak should be broken next year, as work on two major construction projects boosts real GDP growth to 2.5 per cent.

Economic activity in Quebec City is expected to remain moderate, although things are moving in the right direction. Real GDP growth is expected to improve from 1.6 per cent in 2013 to 1.8 per cent in 2014 and to 2 per cent in 2015.

This edition of the Metropolitan Outlook provides economic insights for 13 of the larger Canadian census metropolitan areas.                             

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SOURCE: Conference Board of Canada

Yvonne Squires, Media Relations, Telephone: [phone] ext. 221, [email protected]