Best Canadian cities for economic growth

The Canadian city with the largest economic upswing in 2017 was Hamilton, Ont., finds National Bank’s metropolitan economic momentum index (MEMI).

The MEMI gauges economic growth in census metropolitan areas, with an emphasis on their fiscal capacity.

Hamilton’s MEMI rose 5.1% on a year-over-year basis in Q4, buoyed by employment gains and non-residential construction.

Read: ‘Party is not over yet’ for Canada’s unemployment rate: report

Vancouver came in second, with an increase of 4.2%, underpinned by employment gains, house prices and home sales.

Read: How mortgage rules will impact market

Not far behind was Victoria, with a 4.1% rise in MEMI, mostly due to employment, home prices, its unemployment rate and housing starts.

Read: Housing construction stable in Canada

Fourth was Montreal (MEMI of +3.3%) with gains in employment, housing starts and non-residential building construction.

Finally, Toronto’s MEMI increased 2.9%, with gains in employment, house prices and non-residential construction.

About MEMI

Growth in the index reflects growth in the following six quarterly economic indicators:

• average employment level,
• average unemployment level,
• housing starts,
• number of MLS home sales,
• investment in non-residential building construction in constant dollars and
• the Teranet-National Bank House Price Index (MLS House Price Index for Regina and Saskatoon).

For full details, read the National Bank report.