Over the next two years, the Canadian economy is expected to grow at a moderate pace as we face a weakened Canadian dollar and revived U.S. economy, according to a BMO report.
Read: Global growth too slow
The Canadian economy continues to grow and is expected to come in at 2.3% this year before rising to 2.5% in 2015, notes Robert Kavcic, senior economist, BMO Capital Markets. “The economic climate still varies by province and region, with Alberta outperforming the rest of Canada by a large margin, due in part to sturdy oil prices and a heavy dose of public-sector capital spending providing a boost.”
- Alberta’s economy is expected to grow by 3.5% this year, well above the 2.3% national rate; Alberta is the only province carrying 3-handle growth
- British Columbia is expected to perform closer to the national average, with the housing market remaining balanced after enduring a soft patch
- Saskatchewan’s labour market remains healthy with the lowest jobless rate in Canada (4.5%)
- In Manitoba, real GDP is expected to remain in line with the national average at 2.2%. A diverse and stable economy remains one of Manitoba’s key economic strengths.
- Ontario’s economy expected to improve by 2.2.% this year, up from the 1.3% average pace seen over the two years prior
- Quebec’s economy anticipated to benefit from stronger U.S. demand and a less aggressive focus on balancing the budget
- Overall, this region stands to benefit the most from a weaker Canadian dollar and a rebound in growth south of the border
- Nova Scotia is poised to lead Atlantic provinces in growth, picking up to 2.1% in 2015 as work begins on the Federal shipbuilding contract
- New Brunswick expected to benefit from increased capital spending into 2015 while the trade and tourism sectors in PEI will see a boost from a lower loonie and strengthened U.S. demand
- Newfoundland & Labrador’s lowest average jobless rate in more than a decade will support better trends in housing and consumer spending in the near term