OTTAWA, Dec. 8, 2016 /CNW/ - Manitoba's economy is holding its own this year with real GDP growth of 1.7 per cent as uncertainty on the global stage prevails. The province's outlook will improve in 2017, as economic growth reaches 2.0 per cent propelled by a positive outlook in key manufacturing sectors and a ramp-up in investment spending, according to The Conference Board of Canada's Provincial Outlook: Autumn 2016.
"In 10 of the last 12 years, Manitoba has enjoyed gains in economic growth above 2 per cent. This year, largely as a result of a weaker performance in manufacturing, economic growth will dip slightly below that mark," said Marie-Christine Bernard, Associate Director, Provincial Forecast. "Still, Manitoba can count itself among the top provincial performers this year and next."
- Growth in Manitoba's economy is forecast to reach 1.7 per cent for 2016 and 2.0 per cent in 2017.
- Manitoba has some of the biggest power projects under development anywhere in Canada.
- With the exception of Newfoundland and Labrador, all provinces will see their economy expand next year.
The construction sector will continue to grow over the near term. Manitoba Hydro's development of the Keeyask Dam and the Bipole III Transmission Reliability Project will contribute to healthy gains in investment.
Following two consecutive years of favourable growing conditions, Manitoba's agriculture sector is forecast to cool off in 2017, though it is not expected to hold back economic growth too much. Mining, on the other hand, saw increased production in 2016 but will hinder the province's economic growth prospects for the remainder of the decade as production winds down at Hudbay's 777 mine.
Despite a decline in employment this year, real disposable income will increase 1.6 per cent in 2016, adding to the solid income increases Manitobans have enjoyed over the last decade. As a result, household consumption is expected to advance this year but growth will slow slightly in 2017.
The Provincial Outlook: Autumn 2016 is available via the Conference Board's e-Library.
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Link to publication: http://www.conferenceboard.ca/e-library/abstract.aspx?did=8449
SOURCE Conference Board of Canada
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