Weaker-than-expected momentum in the manufacturing sector closing out 2013 has caused the RBC to lower its GDP outlook for Manitoba in 2014 to 2.0 per cent from 2.3 per cent that it had projected in December, 2013.
It also means that the bank’s forecast GDP growth in Manitoba in for 2013 has been lowered to 2.2 per cent from 2.5 per cent.
Weaker capital spending indicators in Statistics Canada’s latest survey on private and public investment intentions in Manitoba, contrary to RBC’s earlier expectations, also factored into the bank’s decision to lower the forecast for 2014.
Disappointing employment growth going into 2014 also weighed down the forecast.
But the bank is more bullish for 2015 and expects the provincial economy to reaccelerate to a 2.7 per cent growth rate in 2015.
Stronger growth in 2015 will reflect the view that faster rising U.S. economic activity will provide greater underlying support to Manitoba’s economy, particularly in areas such as manufacturing, thereby prompting the need to expand production capacity in the province.