Canada's Regional Economic Momentum to Continue
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Canada's
Regional Economic Momentum to Continue
TORONTO, June 16
/CNW/ - Virtually every province and sector of the Canadian economy has
rebounded sharply, building on the momentum that first emerged in the
latter half of 2009 and accelerated into 2010, according to Scotia
Economics' latest Provincial Trends report. Even with some likely
moderation in growth going forward, the strong early-year performance
has elevated growth rates and pushed Canada to the top of G7 economic
rankings. Scotia Economics expects Canadian output growth to average 3.6
per cent this year, the strongest advance in a decade.
"The factors
generating the renewed economic gains - strength in emerging market
demand, substantial fiscal stimulus, targeted tax incentives and firmer
commodity prices - are all supportive of growth for the remainder of the
year," said Alex Koustas, Economist, Scotia Economics. "However, recent
market volatility in the wake of the euro zone debt crisis has tempered
domestic prospects somewhat going forward. Meanwhile reduced fiscal and
monetary stimulus and a cooling off in housing activity will reinforce a
slower pace of output growth later this year and into 2011."
In
the report, Mr. Koustas noted that in British
Columbia the turnaround seen in real estate, commodities and
transportation, combined with the boost of the 2010 Winter Olympic
Games, is estimated to lift GDP growth to 3.8 per cent in 2010. Alberta is expected to rebound with
GDP growth of 4.1 per cent, as a revival in resource investment and
production spill over to manufacturing and services. "For Saskatchewan, potash exports are
expected to regain a fair portion of the ground lost last year, while
domestic demand will continue to benefit from strong population gains,
leading to GDP growth of 3.9 per cent," said Mr. Koustas. "Manitoba's recovery will be slightly
more subdued, with rebounding manufacturing activity contributing to GDP
growth of 3.1 per cent."
Ontario
entered 2010 in high gear, as auto production ramped up and employment
conditions improved. Inventory restocking is expected to continue to
fuel gains in manufacturing, while an improvement in service sector
activity will underpin GDP growth of 3.6 per cent. In Quebec, raw materials and
aerospace-component manufacturing are expected to couple with
significant hydro and infrastructure investment, contributing to GDP
growth of 3.1 per cent.
"New
Brunswick and Nova Scotia are forecast to experience growth of
2.3 per cent and 2.2 per cent respectively, with service sector strength
and a moderate recovery in exports as the main catalysts," concluded
Mr. Koustas. "GDP growth of 2.3 per cent is forecast for Prince Edward Island, as healthy
tourism activity offsets a slowdown in potato production. Newfoundland and Labrador is forecast
to experience growth of 3.8 per cent due in large part to an improved
performance in the commodities sector."
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The Mortgage Group Canada (www.mortgagegrp.com)
Wednesday, June 16, 2010
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