Manitoba is headed for a period of steady economic growth, according to a report issued Wednesday by Bank of Montreal.

In Winnipeg alone, the bank expects to see 12,000 new jobs created over the next three years. That would pull the jobless rate in the province's largest city down to five per cent, among the lowest in Canada.

The bank estimates Manitoba's economy will grow by two per cent this year, down from 2.7 per cent last year, but still better than the national  average.

It says Manitoba's manufacturing sector is on the mend after falling seven per cent during the 2009 recession.

BMO says Manitoba's mining and energy sectors are also seeing strong momentum, though they are a relatively small part of the province's economy.