OTTAWA, Sept. 23, 2015 /CNW/ - Strength in manufacturing and tourism will help Québec City's economy grow by 1.8 per cent in 2015, up from 1.5 per cent last year, according to The Conference Board of Canada's Metropolitan Outlook: Autumn 2015.
"As the provincial capital, Québec City will feel the pinch of provincial fiscal restraint. However, the ongoing recovery of the manufacturing sector and strong performance from tourism-related businesses such as food and lodging, will prop up Québec City's economy this year," said Alan Arcand, Associate Director, Centre for Municipal Studies.
- Québec City's economy is forecast to expand by 1.8 per cent in 2015, up from 1.5 per cent the previous year. A gain of 1.9 per cent is expected for 2016.
- Québec City's manufacturing sector will continue to recover this year and keep growing over the forecast period.
- Vancouver will be the fastest growing metropolitan economy in the country this year, while long-standing economic leaders Calgary and Edmonton face recession.
Québec City's manufacturing sector is set to build on its 3.8 output growth in 2014, with an increase of 3 per cent this year. The sector is benefiting from a softer Canadian dollar and a strengthening U.S. economy—the destination for many Québec manufactured products.
While output growth in Québec City's construction sector is forecast to be flat in 2015, this is an improvement over the last two years when output fell. The non-residential segment will be boosted by the construction of "Le Phare de Québec," a mixed-use four-tower $600-million project to be built on the former site of the Auberge des Gouverneurs. At the same time, housing starts are on track to increase slightly this year.
Improved tourism activity will boost growth in the personal services sector in 2015. The weaker Canadian dollar is encouraging more American tourists to cross the border while at the same time prompting more Quebecers to stay closer to home for their vacations. Personal services output is expected to grow by 3.6 per cent this year.
The provincial government's commitment to balancing its budget in 2015-16 will limit output growth in Québec City's important public administration sector to just 1.2 per cent this year. The non-commercial services sector, which includes education and health services, is also expected to grow more slowly this year.
Of the 13 CMAs covered in the report, Vancouver will have the fastest growing metropolitan economy in 2015. Toronto, Winnipeg, Halifax, and Montréal round out the top five spots. These cities are all on track to post economic growth above 2 per cent. In contrast, long-standing economic leaders Calgary and Edmonton face recession.
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