Hamilton's economy continues its recovery in 2015

OTTAWA, May 14, 2015 /CNW/ - Thanks largely to a weaker Canadian dollar and a strengthening U.S. economy, Hamilton is well-positioned for widespread growth across its economy this year, according to The Conference Board of Canada's Metropolitan Outlook: Spring 2015.

"Hamilton's ongoing recovery is encouraging, especially in the city's manufacturing sector where we are expecting activity to rise by 1.8 per cent this year and another 2.3 per cent in 2016," said Alan Arcand, Associate Director, Centre for Municipal Studies. "With Hamilton sharing the hosting duties for the upcoming Pan Am/Parapan Am Games with Toronto, growth in local economy's tourism related industries is also expected to be healthy."

HIGHLIGHTS

• Hamilton's real GDP is expected to advance by 2.7 per cent this year, up from 1.7 per cent in 2014.
• The area's manufacturing sector will benefit from stronger U.S. demand and a weaker Canadian dollar.
• Pan Am/Parapan Games will boost tourism activity and spur growth in the region's transportation and warehousing, wholesale and retail trade, and personal services sectors.

Building on last year's modest increase, Hamilton's economy is forecast to expand by 2.7 per cent in 2015 and another 2.6 per cent in 2016.

The manufacturing sector, which will benefit from a low Canadian dollar and increasing demand south of the border, will spur stronger growth in the region's transportation and warehousing sector. Indeed, transportation and warehousing output is expected to advance by 4.3 per cent this year. This sector will also benefit from higher tourism numbers, partly the result of the upcoming Pan Am/Parapan Games. Stronger tourism activity will also fuel faster growth in personal services, which includes several tourist-oriented industries.

The outlook for the construction industry is also bright—output is forecast to climb by 3.7 per cent this year. Although housing starts are expected to slip this year, this is will be more than offset by stronger non-residential construction activity. Work continues on several projects tied to McMaster University, as well as ongoing construction of the new James Street North GO Station and the Hamilton Harbour cleanup. 

On a negative note, output growth will remain modest in the public sector—education, health care, and public administration—due to the fact that the provincial government remains focused on balancing its budget and thus is keeping a tight lid on spending.

Aside from Calgary, Edmonton, Regina and Saskatoon, most of the 13 CMAs covered in the report will see their economic fortunes improve this year, boosted by lower oil prices, a weaker Canadian dollar and improving U.S. economy. Toronto, Vancouver and Halifax are expected to be the fast growing metropolitan economies this year, with each posting growth of 3.1 per cent.

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SOURCE Conference Board of Canada

Yvonne Squires, Media Relations, The Conference Board of Canada, Tel.: [phone] ext. 221, E-mail: [email protected]; or Juline Ranger, Associate Director of Communications, The Conference Board of Canada, Tel.: [phone] ext. 431, E-mail: [email protected]