Manitoba's economy to thrive in 2016: Conference Board of Canada
Manitoba is poised to be among Canada's leaders in economic growth in the next two years.
The province is expected to have the second-fastest growing economy in the country in 2016, just behind British Columbia, then follow that up with an even stronger 2017, according to the Conference Board of Canada.
The CBOC, which released its provincial outlook report on Monday, said Manitoba's economy should see real GDP growth of 2.5 per cent in 2016 and 3.0 per cent in 2017.
"Manitoba will be one of the country's strongest economic performers in 2016, thanks to healthy growth across key sectors, such as construction, manufacturing and service industries," said Marie-Christine Bernard, associate director with the board.
The manufacturing sector is expected to grow by 1.9 per cent in 2015 and 3.4 per cent in 2016.
As well, construction is booming in the province and will continue to do so as work ramps up on Manitoba Hydro projects and the rolling out of the provincial government's infrastructure plan, according to the CBOC.
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Growth in that sector is expected to reach 1.4 per cent in 2016 and steadily increase over the next two years.
Other highlights include:
- Bright spots in the services sector include transportation and warehousing, which is expected to post gains of 2.5 per cent for 2015 and 2016, and 4.1 per cent in 2017.
- The finance, insurance and real estate sector is also performing well with gains forecast to average 3.4 per cent in 2016 and 2017.
- Employment is expected to rise by 1.3 per cent in 2016 and 1.8 per cent in 2017.
British Columbia is anticipated to lead the country with 3.6 per cent growth in 2016, thanks to strong construction and housing sectors.
Alberta and Saskatchewan will continue to feel the pain from the difficulties in the energy sector, but neither will be in recession in 2016, the CBOC said.
Saskatchewan should bounce out of its recession with two per cent GDP growth in 2016, while Alberta is forecasted to see real GDP growth of 1.2 per cent in 2016 after the economy shrank by 1.2 per cent this year.
The Conference Board said low oil prices led to a 15.2 per cent drop in energy investments this year in Alberta and will mean $11 billion less in the province's economy by the end of 2016.
With files from The Canadian Press