Winnipeg's economic growth jetting ahead of other prairie cities

OTTAWA, May 14, 2015 /CNW Telbec/ - Healthy economic conditions should prevail in Winnipeg in 2015, with real GDP forecast to rise 2.5 per cent, up from 2.1 per cent last year, according to The Conference Board of Canada's Metropolitan Outlook: Spring 2015.

"Winnipeg is the only Prairie city in our forecast to see its economic fortune improve this year," said Alan Arcand, Associate Director, Centre for Municipal Studies. "Local manufacturing will moderate this year, but services growth will stay healthy and non-residential construction will see an upswing."

HIGHLIGHTS

• Winnipeg's real GDP forecast to rise 2.5 per cent in 2015, up from 2.1 per cent last year.
• Winnipeg's manufacturing sector is expected to post slower but still solid growth this year.
• 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.

Winnipeg's manufacturing sector is set to post slower but still solid growth this year. A stronger U.S economy and softer Canadian dollar, both of which will fuel exports, will support growth of 2.6 per cent this year.

Despite a dip in residential construction, local construction is forecast to expand by 4 per cent this year thanks to a healthy non-residential investment outlook, which includes the city's investment in public transportation infrastructure and an expansion of the Manitoba Museum.

Winnipeg's services sector is expected to expand by 2.4 per cent in 2015, with all sectors showing growth. An expected slowdown in retail sales in 2015 suggests a more moderate but still healthy 2.8 per cent uptick in wholesale and retail trade output. On the other hand, growth in business services is forecast to accelerate to 2.8 per cent in 2015 from 0.5 per cent last year. Meanwhile, expansion of 2.1 per cent is forecast for 2015 in finance, insurance, and real estate, Winnipeg's largest services industry.

Winnipeg's solid economic performance continues to attract newcomers from other countries and elsewhere in Manitoba. The Conference Board expects this trend to continue, with population forecast to grow at a healthy average annual rate of 1.3 per cent over the next five years.

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 an 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]