Ontario's battered economy will share top spot with British Columbia in Canadian economic growth this year, as labour markets continue their recovery, consumers begin spending on big-ticket items again and the auto sector rebounds, the Conference Board of Canada said Monday.
In its Canadian Provincial Outlook: Spring 2010, the board says Ontario's economy will expand at 3.8% this year, a rate matched only by that forecast for B.C.
"There are clear signs of economic recovery from cost to coast," said Marie-Christine Bernard, associate director of provincial forecasting.
"The improved domestic economies of Ontario and B.C., along with increased demand from the United States, will support a strong rebound in both provinces.
"However the rebound will be gradual for most other provinces, spreading over the next two years," Bernard said.
B.C.'s economy will benefit from the one-time Olympics boost, as well as a recovery in forestry, manufacturing and construction sectors. But with the Olympics out of the way, and housing growth expected to ease, growth will slow to 2.8% in 2011, the board adds:
Province by province, the board forecasts:
- Alberta will grow at 3.3% in 2010, the result of a revival in drilling activity and capital investment in the oilsands.
- Saskatchewan's economy will power ahead at 3.5% as the potash industry slowly recuperates and global demand for fertilizers improves.
- Manitoba will benefit from a rebound in agriculture and manufacturing and miming activity but growth, at 2.2%, will be slowed by a drop in construction activity
- Quebec will grow more than previously expected, as consumer spending and a hot housing market push growth to 2.6%.
- Newfoundland and Labrador will suffer at the hands of a long-running mining dispute and weakness in the offshore oil industry. But several major construction projects should deliver growth of 2.4%.
- Nova Scotia's economy will grow by 2.2% through continued infrastructure spending and consumer demand.
- Prince Edward Island's economy is likewise expected to post 2.2% growth thanks to public infrastructure spending;
- New Brunswick's growth will be limited to 1.8% due to a drop in business investment and a "modest recovery" in the manufacturing sector.
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