Manitoba forecast to be No. 2 in GDP growth

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This article was published 15/12/2014 (3022 days ago), so information in it may no longer be current.

Manitoba will be one of the leaders in economic growth next year, according to the latest forecast from RBC.

In its provincial outlook report released on Friday, RBC Economics predicts Manitoba will tie British Columbia for the second-strongest real gross domestic product (GDP) growth in 2015, at 2.9 per cent.

It predicts Ontario will lead the charge with growth of 3.1 per cent, while the Canadian economy is expected to expand by 2.7 per cent.

The bank’s 2015 growth projection for Manitoba is up a notch from its September forecast, when it was predicting growth of 2.8 per cent. Its growth projection for this year remains unchanged, at 1.8 per cent.

The bank said a projected recovery in agricultural activity and stronger manufacturing output are expected to contribute to the rebound in GDP growth next year.

It said manufacturing sales have shown some tentative positive signs in the third quarter of this year, rising almost six per cent following increases in the first and second quarters.

“This revitalization of the manufacturing sector is evidence that exporters in the province are benefitting from both the strengthening U.S. economy and the weakening in the Canadian dollar,” said Craig Wright, RBC’s senior vice-president and chief economist.

“Transportation equipment is expected to continue to lead the manufacturing sector, specifically increased demand for aerospace and bus equipment. Machinery exports are also expected to benefit from continuing solid U.S. business investment,” he added.

The bank said because of plunging world oil prices, it has reduced its 2015 growth projections for Canada’s three biggest oil-producing provinces — Alberta, Saskatchewan and Newfoundland and Labrador. It now predicts they’ll post growth of 2.7, 2.8 and 1.1 per cent respectively.