Vancouver among top economic performers in 2015

OTTAWA, May 14, 2015 /CNW/ - Vancouver is expected to have one of the fastest growing economies in Canada over the next two years, forecast to expand by 3.1 per cent in 2015 and 3.2 per cent in 2016, according to The Conference Board of Canada's Metropolitan Outlook: Spring 2015.

"Vancouver's economy grew by an average of 3.3 per cent over the past five years. Widespread gains across all sectors of the economy will lead to continued healthy growth over the next two years," said Alan Arcand, Associate Director, Centre for Municipal Studies.

HIGHLIGHTS

• Vancouver will enjoy one of the fastest growing economies in 2015. Toronto and Halifax round out the top three performers.
• The city's economy is expected to expand by 3.1 per cent in 2015.
• Construction activity is expected to rebound this year and output growth in the manufacturing industry is forecast to stay strong.
• Hit hard by the slump in oil prices, long-standing economic leaders Calgary and Edmonton face recession in 2015.

Work at Seaspan's North Vancouver shipbuilding site is expected to hit full production this year, helping to raise manufacturing output by 4.8 per cent. The local manufacturing sector is also expected to benefit from an improved economy and a lower Canadian dollar. Stronger manufacturing activity will, in turn, keep transportation and warehousing on the upswing over the next two years.

Strong job gains, faster population growth, and high prices for existing homes will keep demand for new housing in Vancouver strong. In fact, housing stats are forecast to grow by 3.4 per cent in 2015 and 3.2 per cent in 2016, topping 20,000 units in 2016 for the first time since 2007.

Activity in the non-residential market will gear up this year as well. Among the biggest projects currently under way are the Trump International Hotel and Tower, the Telus Garden mixed-use development, and the Marine Gateway development. Work is also being done to restore the old stock exchange building and to add a casino at BC Place. All of these projects, combined with higher housing starts, are expected to push construction output by 2.3 per cent in 2015 and 5 per cent next year.

With employment forecast to grow by 1.3 per cent this year, following a 2.3 per cent gain in 2014, it is expected that consumers will be enticed to keep spending, leading to a 4.9 per cent increase in wholesale and retail trade output.

With the exception of Calgary, Regina, Edmonton and Saskatoon, most of the 13 CMAs covered in the report will see their economic fortunes improve this year, boosted by lower oil prices, a weaker Canadian dollar, and improvement in the U.S. economy. Toronto, Vancouver, and Halifax will be the fastest growing metropolitan economies in the country this year, with each posting gains of 3.1 per cent.

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SOURCE Conference Board of Canada

Yvonne Squires, Media Relations, The Conference Board of Canada, Tel.: [phone] ext. 221, E-mail: [email protected]; or Juline Ranger, Associate Director of Communications, The Conference Board of Canada, Tel.: [phone] ext. 431, E-mail: [email protected]