Sectors like energy and agriculture benefit from Manitoba’s steady economy and the U.S. recovery, says a BMO report.
“The turnaround in the U.S. economy, coupled with lower Canadian dollar, is leading directly to growing sales and improved profitability in manufacturing, distribution, trucking and service sectors,” says John MacAulay, BMO’s Prairies and Central Canada senior vice president.
Agriculture in the province reached record production levels last year. “Real GDP for the province is expected at 2.2% this year, unchanged from 2013, most likely due to a strong year for crops,” says Robert Kavcic, a senior economist at BMO Capital Markets.
Energy and mining are also contributing to the economy at greater levels. “Oil production is still a small share of the overall economy, however it’s risen fourfold since the start of the 2000s, reaching 18 million barrels,” says Kavcic.
“Stability continues to be one of Manitoba’s key economic strengths,” he adds.
Manufacturing, often a weak spot for the province, dropped 0.4% in 2013. But a stronger American economy and a weaker loonie will help the sector this year, says Kavcic.