Healthy economic outlook for Hamilton in 2016
OTTAWA, March 3, 2016 /CNW/ - The economic outlooks for Toronto and Hamilton remain positive in 2016. In fact, Toronto's economy is expected to expand by 2.8 per cent, which will make it the third fastest growing metropolitan economy in Canada this year, according to The Conference Board of Canada's Metropolitan Outlook: Winter 2016. Meanwhile, Hamilton's economy will remain steady and solid, outpacing the national average for the second straight year.
"Stronger activity in manufacturing and in non-residential construction, along with healthy gains across most services-producing industries, are expected to drive healthy overall growth in Toronto's economy in 2016," said Alan Arcand, Associate Director, Centre for Municipal Studies, The Conference Board of Canada. "A similar story is expected to play out for Hamilton's economy this year too, although overall growth will lag slightly behind Toronto's."
- Toronto's real GDP is expected to expand by 2.8 per cent in 2016, making it the third fastest growing metropolitan economy in Canada, behind Vancouver and Halifax.
- Hamilton's economy is expected to grow by 2.2 per cent this year, following a similar increase in 2015.
- Stronger growth in manufacturing and in non-residential construction, along with solid services sector activity, account for Toronto and Hamilton's healthy economic outlook.
Real GDP in Toronto is expected to expand by 2.8 per cent this year, down only slightly from a 3.1 per cent expansion in 2015. The region remains a top draw for the country's immigrants, fuelling solid population growth and domestic demand, which drives activity in such sectors as construction, wholesale and retail trade, and personal services. Overall services sector output is forecast to expand by 2.8 per cent this year. Meanwhile, Toronto's construction industry is expected to grow by 3.1 per cent this year, as an abundance of major non-residential projects will offset a decline in housing starts. At the same time, export-oriented industries, like manufacturing and tourism, also enjoy positive outlooks, thanks to the lower Canadian dollar and a healthy U.S. economy. Output in Toronto's manufacturing industry is expected to advance by 2.8 per cent this year.
Despite the healthy economic outlook, job growth is projected to slow sharply this year. About 85,000 jobs were created in Toronto in 2015, well above historical norms. A more sustainable 31,000 jobs is forecast to be created this year.
Hamilton's economy is expected to grow by 2.2 per cent this year, similar to 2015's 2.1 per cent increase. The manufacturing sector and non-residential construction will be growth engines again this year. Even with U.S. Steel in the process of moving its operations to the United States over the next year, manufacturing output is forecast to rise 2.4 per cent in 2016, as the weak loonie and solid U.S. demand provide a boost to Hamilton's export-oriented manufacturing sector. Meanwhile, a number of non-residential construction projects, including those at McMaster University—a new multi-purpose building and the Gerald Hatch Centre for Engineering Experiential Learning—as well as Phase two of the James Street Go station is expected to keep the local construction sector busy for 2016. Finally, services output growth will remain steady at 2.1 per cent for a third consecutive year.
Like Toronto, the pace of job creation will slow in Hamilton this year. Some 3,600 positions were added to payrolls in 2015, while about 2,800 jobs are expected to be created in 2016.
Released today, Metropolitan Outlook: Winter 2016, is The Conference Board of Canada's once-a-year analysis of 28 Canadian CMAs.
Join Alan Arcand and Constantinos Bougas from the Conference Board's Centre for Municipal Studies as they discuss why Toronto is expected to perform well in the year ahead at a live webinar on April 25, 2PM Eastern.
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SOURCE Conference Board of Canada
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