Winnipeg Free Press - PRINT EDITION

Manitoba economy expected to keep on chugging

  • Print
Paul Soubry, president and CEO of New Flyer, which has seen a surge in new bus orders this year, stands in front of a bendy-bus.

MELISSA TAIT / WINNIPEG FREE PRESS ARCHIVES Enlarge Image

Paul Soubry, president and CEO of New Flyer, which has seen a surge in new bus orders this year, stands in front of a bendy-bus. Photo Store

ONE of the country's leading economic forecasters sees better times ahead for the Manitoba economy as the province's manufacturing sector revs up production activity and a wave of new mining developments come on-stream.

In its latest quarterly forecast released Monday, the Conference Board of Canada predicts the Manitoba economy will grow by two per cent next year and by a robust 2.9 per cent in 2015.

That's up from this year's anticipated GDP growth rate of 1.7 per cent, the board adds.

"After tepid growth in 2013, Manitoba's economic prospects are improving," the Ottawa-based think-tank said in its Provincial Outlook report. "The goods and service industries will both perform well over the next two years.

Employment growth is expected to pick up and household disposable income will advance strongly -- to the benefit of the province's retailers."

The board said metal mining production, in particular, should see accelerated growth over the next two years.

It notes several new mining developments will be ramping up production over the next two years. They include San Gold's Rice Lake gold mine, Carlisle's Farley gold mine, HudBay Minerals' Lalor zinc, copper and gold mine, and the Reed copper mine, which is a joint venture between HudBay and VMS Ventures.

"Although metal mining (output) will grow by only 0.4 per cent in 2014, production is expected to jump 19.5 per cent in 2015," the report adds.

Things are also looking up for the province's manufacturing sector, according to Natalie Ward, a board economist who worked on the Provincial Outlook report.

Ward said New Flyer Industries has seen a surge in new bus orders this year, which will help keep its Winnipeg production plant humming over the next two years. And General Electric's new jet-engine testing facility in Winnipeg also received $7 million in additional funding to provide an enhanced suite of maintenance, repair and overhaul services for the most popular line of GE jet engines, she said.

"Aside from everything else, that's very good news, because that's a substantial amount of money to be injected into this sector."

Ward said construction is one industry that isn't expected to do as well in 2014.

She said fiscal constraints are expected to lead to a decline in public-sector investment in new construction projects, and new-home construction activity is also expected to level off.

"However, 2015 will bring brisk growth in construction as business non-residential investment picks up and housing starts bounce back," the report adds. The board said Manitoba isn't the only province that should see an increase in economic output next year. In fact, six of them are expected to do even better than Manitoba, with Alberta likely to lead the charge with 3.4 per cent GDP growth.

However, 2015 will be a much different story, the board adds, with Manitoba expected to post the second-strongest growth after British Columbia's anticipated 3.1 per cent.

Nationally, the Conference Board predicts the Canadian economy will expand by 2.3 per cent in 2014, followed by 2.6 per cent growth in 2015.

murray.mcneill@freepress.mb.ca

Republished from the Winnipeg Free Press print edition December 10, 2013 B5

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Stuary Murray announces musical RightsFest for CMHR opening weekend

View more like this

Photo Store Gallery

  • Young goslings are growing up quickly near Cresent Lake in Portage La Prairie, Manitoba- See Bryksa 30 Day goose project- Day 11- May 15, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • PHIL.HOSSACK@FREEPRESS.MB.CA 090728 / WINNIPEG FREE PRESS White Pelicans belly up to the sushi bar Tuesday afternoon at Lockport. One of North America's largest birds is a common sight along the Red RIver and on Lake Winnipeg. Here the fight each other for fish near the base of Red RIver's control structure, giving human fisher's downstream a run for their money.

View More Gallery Photos

Poll

Should Manitoba support the transport of nuclear waste through the province?

View Results

Ads by Google