OTTAWA, March 20, 2014 /CNW/ - Alberta finds itself in an enviable
position. Both its exports and domestic economy are expanding rapidly
and the province is expected to have the fastest growing provincial
economy this year, according to The Conference Board of Canada's Provincial Outlook - Winter 2014.
"The economic outlook for the rest of the provinces is mixed. Solid
growth in the U.S. economy and a slightly weaker Canadian dollar will
help exporters, but growth prospects in the resources sector are uneven
across the country," said Marie-Christine Bernard, Associate Director, Provincial Forecast.
An estimated 61,000 new jobs will be added to Alberta's economy in 2014.
Growth in Ontario is expected to break the 2 per cent mark this year for
the first time since 2011.
Economic prospects are brightening in Nova Scotia compared to last year,
and to a lesser degree in Manitoba and British Columbia.
The strength in Alberta's energy sector will continue to stimulate the
economy. A total of 61,000 new jobs are forecast in 2014, which will
continue to attract newcomers to the province, in turn boosting
consumer spending and housing demand. Alberta's real gross domestic
product (GDP) is forecast to rise by 3.2 per cent in 2014. A risk to
the forecast is the delay in pipeline development. Oil pipeline
capacity remains a challenge for Alberta and without the construction
of new pipelines, future investment in the oil and gas sector could be
British Columbia's forestry and manufacturing sectors are benefiting
from a rebound in home construction in the United States. These sectors
will help B.C.'s economy grow by 2.4 per cent this year, an improvement
from less than 2 per cent growth in 2013.
Saskatchewan's economic growth is expected to moderate this year from
4.1 per cent in 2013, due to cuts in potash production and muted
prospects for the agriculture sector. However, gains in metal mining,
construction and manufacturing will help support growth of 2.1 per cent
Manitoba's economy is forecast to expand by 1.8 per cent in 2014. Growth
in construction, manufacturing, and in the service sector, will help
boost employment and disposable income in the province.
Ontario's real GDP is set to increase by 2.1 per cent, thanks to a
rebound in exports and solid growth in commercial and financial
services. However, Ontario's exports will be limited by trends in the
North American auto industry. Auto makers have been shifting production
to the southern U.S. and Mexico, and that has reduced vehicle
manufacturing in Ontario.
A more positive outlook for business investment will lift Quebec's
economy by 2 per cent in both 2014 and 2015. A number of large
investment projects have been announced, which will stimulate
investment spending on non-residential structures, and machinery and
Prospects for New Brunswick's economy will remain dim for at least one
more year. Cuts in the potash industry, and the closing of the Maple
Leaf Food plant in Moncton, will limit economic growth to 0.8 per cent
Following three years of weak growth, Nova Scotia's economy is set to
pick up speed in 2014. The province's economy is forecast to expand by
2.6 per cent this year, fuelled largely by natural gas production from
the Deep Panuke offshore field and solid gains in business
non-residential investment in structures.
Prince Edward Island's economy will see weaker growth of 1.2 per cent in
2014. The Island's manufacturing, construction and agricultural
industries are expected to post slower growth this year.
With work winding down on Vale's nickel processing facility,
construction activity in Newfoundland and Labrador is set to slow down.
Coupled with declining metal mining production, overall real GDP is
expected to grow by only 0.4 in 2014.
Image with caption: "Real GDP by Province in 2014 (CNW Group/Conference Board of Canada)". Image available at: http://photos.newswire.ca/images/download/20140320_C6148_PHOTO_EN_38161.jpg
SOURCE: Conference Board of Canada
For further information:
Yvonne Squires, Media Relations, Tel.: 613- 526-3090 ext. 221