OTTAWA, June 13, 2016 /CNW/ - Manitoba's economy will be advancing at a good pace, gaining another 2.1 per cent in real GDP growth this year and another 2.6 per cent next year, according to The Conference Board of Canada's Provincial Outlook: Spring 2016.
"With real GDP set to expand above the national average this year, Manitoba will continue to be a reliable source of growth in Canada," said Marie-Christine Bernard, Associate Director, Provincial Forecast. "Services will see healthy increases as Manitobans are on a spending spree due to strong employment and wage gains from recent years."
- Growth in Manitoba's economy is forecast to reach 2.1 per cent in 2016 and 2.6 per cent in 2017.
- The balance of growth will shift this year from the goods-producing sector to a favourable performance for the services sector.
- Only four provinces are expected to see real GDP growth above 2 per cent this year: British Columbia, Ontario, Manitoba, and Prince Edward Island.
- The commodity price slump will continue to hurt the economies of Newfoundland and Labrador, Saskatchewan, and Alberta. The wildfires in northern Alberta will have a short-term economic impact but rebuilding efforts will lift real GDP in 2017.
After leading the country in employment growth, Manitoba's retail sales will increase faster than every other province in 2016, as the newly employed pick up their spending on both durable and non-durable goods. Nearly 10,000 new jobs were created in Manitoba in 2015. Job creation will not fare so well this year but will roar back in 2017.
Manufacturing will drive growth in the goods-producing sector in 2016 with a 2.6 per cent expansion. Although manufacturers will keep busy in 2017, the construction sector will be pushed to the front of the pack, as work on the Keeyask Dam and the Bipole III Transmission Reliability Project gets into full swing.
Despite the opening of the Reed and Lalor mines in 2015, metal mining production is forecast to stabilize this year and advance again in 2017. But, over the medium term, production will take a hit as Hudbay's 777 Mine reaches the end of its life. Agriculture is coming off a banner year, and 2016 will accordingly see a return to more normal growth.
While the housing sector has cooled in the past year, non-residential investment, mainly in engineering construction, has been rising swiftly. And, as more capital is invested in the Keeyask Dam and the Bipole III Transmission Reliability Project, construction will be a strong contributor to bottom-line growth in 2017.
The Provincial Outlook: Spring 2016 is available via the Conference Board's e-Library.
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SOURCE Conference Board of Canada
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