OTTAWA, SEPT. 23, 2015 /CNW/ - Led by weak resources prices, Regina's economic growth will slow to 1.6 per cent this year, down from 3.8 per cent in 2014, according to The Conference Board of Canada's Metropolitan Outlook: Autumn 2015
"Lower prices for many of Saskatchewan's key commodities, including oil, potash, uranium and wheat, will put a damper on Regina's economy this year. The metropolitan area's economic growth in 2015 will be less than a third of its 2010-14 annual average pace," said Alan Arcand, Associate Director, Centre for Municipal Studies. "Economic growth should pick up next year but remain modest by historical standards with an expected increase of 2.4 per cent."
- Prompted by the drop in commodity prices, Regina's economic growth will slow to 1.6 per cent this year.
- The weakest part of Regina's economy will be construction, which is poised to fall by 5.5 per cent this year.
- Vancouver will be the fastest growing metropolitan economy in the country this year, while long-standing economic leaders Calgary and Edmonton face recession.
Regina's goods-producing industries will expand much more slowly in 2015 than in recent years. The construction sector will be the weakest part of the economy this year, with output poised to fall by 5.5 per cent. The industry will be hurt by the combination of fewer major non-residential projects and easing residential construction. At the same time, output growth is forecast to slow in the resources, agriculture and utilities sector as well as in the manufacturing industry.
The services sector is also on track to slow. The finance, insurance, and real estate industry will feel the pinch of a cooling housing market, with output growth expected to slow for the third consecutive year in 2015. At the same time, wholesale and retail trade output is also poised to decelerate, as local retail sales decline this year for the first time since 1991. Overall, output of Regina's services sector will slow to a post-recession low of 2.3 per cent this year.
In line with a cooling economy, job growth will be limited to only 1 per cent this year, which will raise the unemployment rate nearly a full percentage point to 4.4 per cent.
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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