OTTAWA, March 8, 2016 /CNW/ - Manitoba will be one of the top-performing provinces in the country in 2016, with real gross domestic product (GDP) growth forecast to rise 2.3 per cent this year, according to The Conference Board of Canada's Provincial Outlook: Winter 2016.
"Healthy growth across key sectors of Manitoba's economy, such as agriculture, construction, manufacturing, and the service sector in general, is creating a strong base for Manitoba to become one of the top-performing provinces over the next two years," said Marie-Christine Bernard, Associate Director, Provincial Forecast.
- Growth in Manitoba's economy is forecast to accelerate from 1.5 per cent last year to 2.3 per cent in 2016.
- Driving growth will be the agriculture, construction, manufacturing, and the services sectors.
- B.C.'s economy will outpace all other provinces this year, posting real GDP growth of 2.7 per cent.
- The slump in oil prices will continue to weigh on the economies of Alberta, Saskatchewan, and Newfoundland and Labrador.
Barring any unfavourable weather events to disrupt seeding or harvesting, Manitoba's agricultural sector is on track to post growth of 5.7 per cent this year. Rising global wealth should help sustain strong demand for Manitoba's agricultural products over the next two years.
Also fuelling economic growth will be the construction sector as the provincial government continues to roll out its large infrastructure plan. In addition, major Manitoba Hydro projects and a rebound in housing starts will boost growth in the construction sector by 4.4 per cent this year and nearly 10 per cent in 2017.
Growth prospects are also bright for several segments of the manufacturing sector over the next two years, as strong demand from the United States and a depreciated Canadian dollar are expected to lift exports.
Solid gains in these key industries will support job creation and consumer spending in the province. After posting the strongest job growth in Canada in 2015, Manitoba's job market is forecast to continue to create jobs this year, albeit at a more moderate pace. Household spending is forecast to increase in line with employment and income gains. That should benefit the retail and wholesale trade sectors, which are expected to grow at an average annual pace of 2.1 per cent over the next two years.
SOURCE Conference Board of Canada
Image with caption: "Real GDP by province in 2016 (CNW Group/Conference Board of Canada)". Image available at: http://photos.newswire.ca/images/download/20160308_C3767_PHOTO_EN_637517.jpg
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